**London**: The UK logistics and supply chain management sector recorded 93 completed transactions in 2024, a 15% increase from 2023, despite a decline in Q4 activity. International investment remains strong amid economic pressures, with technology playing a key role in this dynamic market.
The UK logistics and supply chain management sector experienced a notable surge in dealmaking activity throughout 2024, with a record total of 93 completed transactions. This figure represents a 15% increase compared to the 2023 total.
According to a report issued by accountancy and business advisory firm BDO LLP titled ‘UK M&A Update – Q4 2024, Logistics and Supply Chain Management’, while deal volumes for the final quarter of 2024 fell to 19—down from a five-year high of 27 in the preceding quarter—there remains keen interest from international investors. The total value of disclosed deals in the fourth quarter was markedly lower than that of Q3, which recorded a high propelled by the acquisition of Evri by Apollo Global Management Inc for £2.7 billion.
The report details that most transactions in Q4 were trade deals, with a substantial 58% classified as cross-border transactions, an increase from 44% in Q3. Among the significant transactions was Green Fulfilment’s acquisition of Omni Channel Fulfilment and InPost SA’s purchase of the remaining 70% shareholding in Menzies Distribution Group. Additionally, Schenk made headlines with its acquisition of Suttons Tankers. The growth of private equity interest in the sector was notable, with direct investments being complemented by trade acquisitions from PE-backed entities.
Technology appears to play a crucial role in shaping the industry, with 42% of the transactions reported being tech-related. Jason Whitworth, M&A partner at BDO LLP, commented on the market dynamics, explaining to Logistics Business that the observed decline in deal activity during Q4 is likely a result of businesses accelerating deals to close in advance of the Autumn Budget. Whitworth noted that the market was digesting budget announcements, particularly the implications of increased costs associated with higher National Insurance Contributions and minimum wages. Despite these challenges, he indicated that the appetite for deals remains strong, particularly among international investors looking to consolidate within the UK market.
Prominent cross-border transactions in Q4 included Aptean Inc’s acquisition of Indigo Software Ltd, while Deutsche Post and Fracht AG made their presence felt in the UK by acquiring Brandpath Group and Quality Freight Ltd, respectively.
Whitworth further elaborated on the outlook for the sector, stating, “As we get into the full swing of 2025, the improving confidence highlighted in our UK Logistics Confidence survey in October 2024 appears to have been dented. Increased costs and the less benign economic outlook have increased the pressure on the industry.” He added that 2025 is expected to present significant challenges alongside various operational changes occurring within the sector.
In light of potential supply chain disruptions and rising trade costs, particularly following significant changes in US trade policy under President Donald Trump, UK businesses are encouraged to brace for the uncertainties ahead. A recent BDO survey of 500 mid-market enterprises found that supply chain disruptions rank among the top challenges faced by UK businesses, with a consensus that addressing supply chain risks will be a key priority in the next year.
Whitworth concluded, “With this continued uncertainty and challenge comes opportunity for those building on effective and quality service, and we anticipate that capital-rich investors and trade will continue to drive increased investment activity as the focus shifts to increased technology enablement and consolidation of supply chain services to drive efficiencies.”
Source: Noah Wire Services
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