Trucking Mergers & Acquisitions : Interesting facts
2015 witnessed major merger and acquisition transactions in the logistics and transportation industry. According to reports, the value of the completed deals in 2015 was around $74 billion. Additionally, deals worth $100bn were announced in 2015.
Here is the list of a few significant M&A activity that transformed the business model of the industry:
1. UPS acquires US logistics company Coyote Logistics
UPS, a Chicago-based transportation management service provider acquired Coyote Logistics in 2015. Coyote Logistics was formed in 2006 and very soon it expanded its business reach. According to David Abney, UPS Chief Executive Officer “This high quality acquisition significantly increases UPS full-truckload scale and we are uniquely positioned to take advantage of exciting new revenue growth and synergy opportunities.”
2. XPO Logistics acquires Norbert Dentressangle
The Greenwich and Connecticut-based company XPO Logistics acquired majority interests of Norbert Dentressangle SA in 2015 in a deal valued at $3.53 billion including debt. With this acquisition, XPO Logistics became one of the top ten global transportation and logistics service providers. With the surge in the European economy, many US-based companies have become particularly interested in striking cross-border deals.
3. FedEx Corporation acquires TNT Express
In April 2015, global express delivery giant FedEx had announced to acquire its Netherlands-based rival TNT-NV. In May 2016, both the companies confirmed the acquisition in a joint statement. The deal valued at €4.4 billion will combine the strength of both the companies and further expand the base of FedEx in Europe. “The (euro) 4.4-billion acquisition combines the strengths of the companies –– the world’s largest air express network and an unparallelled European road network, which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry,” FedEx said in a statement.
4. Japan Post acquires Toll Logistics
This deal, worth $5 billion, helped the Japan Post transform their existing business model as they turned to a full-service logistics service provider from postal service provider. Japan Post wanted to expand overseas to offset the decline in demand for traditional postal services in Japan. “Japan Post will position Toll as a platform for cultivating global business, leveraging that company’s expertise to expand Japan Post’s global logistics operations and revenues,” the company said.
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