Philadelphia-based logistics firm BDP International Inc. and Pilot Freight Services, a Lima, Pa.-based freight forwarder, are both exploring sales, people familiar with the matter said. The companies would likely fetch under $500m each, though Pilot is considering selling only a stake, the people said. Other logistics companies around their size are likely looking for buyers as well, they said.
The offers signal a pick-up in deal activity in the sector following a slowdown in recent months. To help navigate an unpredictable freight market, many companies have been making deals to expand into new business lines, allowing them to sell lucrative packages of transportation services to retailers and other shippers.
“Growth is always important and organic growth is difficult right now,” said Daniel Herron of Herron & Associates LLC, a financial advisory firm specializing in logistics mergers and acquisitions. “Money is not expensive to borrow and if you are good at [mergers and acquisitions], it is very efficient.”
Enjoy curated articles directly to your inbox.