Insights 23.6.20 Author: Philip Bird

Logistics M&A in the World of Coronavirus

Insights 23.06.2020 Author: Philip Bird

Philip Bird, Head of Corporate Finance and Logistics at CBW, has recently been talking about the ever increasing importance of the logistics sector since the outbreak of COVID-19, do take a moment to read his article on ‘Three Cheers for the UK Logistics Sector!’.

Philip has also been looking at how he believes the logistics sector will be affected by the COVID-19 crisis, and has recently given his predictions for where he sees the likely biggest impacts to be for the sector. In his recent article ‘Five Ways COVID-19 will Change the Logistics Sector’, Philip talked about consolidation amongst companies as supply chains become more localised and Merger and Acquisition (M&A) activity becoming more domestic in its nature.

Some six weeks later, we are already seeing a few interesting M&A transactions in the logistics sector which reflect the sector’s response to the COVID-19 pandemic. Most notably:

  • Muller’s acquisition of Fowler Welch, one of the UK’s leading chilled foods logistics businesses;
  • Austrian Post’s acquisition of Aras Kargo, an express courier business based in Turkey; and
  • The acquisition of Movianto, Europe’s leading healthcare logistics business, by EHDH of France, likewise a healthcare logistics Group.

These transactions suggest that it is the sectors which have so far been positively affected by Coronavirus which are seeing strong levels of M&A activity. We’ll see if this trend continues in the coming months.

What next?

If you have any questions, please get in touch with Philip Bird who will be happy to help. You can find out more about our Logistics offering here.