Business, Freight News

Ti sees acquisition surge

[ December 17, 2014   //   ]

Conditions are right for a significant upturn in mergers and acquisitions activity, the authors of a new Transport Intelligence (Ti) report claim – despite the weak state of the European economy.

Near-sourcing will increase the need for logistics capabilities in emerging markets at the periphery of Europe, such as Turkey and North Africa and geographic expansion through acquisition will be widespread. Logistics companies will also continue to target niche markets in fast growing sectors, such as healthcare/pharmaceutical, offer higher margin opportunities, especially in the temperature controlled market.

European logistics companies will also be targeted as stronger, profitable Asian companies expand their networks into Europe.

With the rise of low cost retailers such as Aldi and Lidl, logistics companies will need to diversify into other sectors where this a greater demand for value adding logistics services. Logistics companies will need to add niche services both in fulfilment and last mile delivery for e-commerce.

And, with technology becoming the most important competitive differentiator, c ompanies with specialist capabilities will be targeted by larger players.

John Manners-Bell, Ti’s CEO commented: “Although the European economy has stagnated, the manufacturing and retailing sectors are undergoing systemic change in a market environment influenced not least by e-commerce. This transformation will force logistics companies to seek out new markets, sectors and niches and we believe acquisition activity will increase significantly over the coming years.”