December 2024 was a significant month for mergers and acquisitions in the global logistics industry. The transactions in December align with broader industry trends, including globalization, the growth of e-commerce, and the adoption of cutting-edge technologies like AI and automation.
North America emerged as the dominant region in December’s M&A landscape, accounting for 67% of all global transactions. The United States alone accounted for 53% of these deals, with 16 recorded acquisitions. This dominance reflects the region’s dynamic market and the strategic priorities of its companies to expand both domestically and internationally.
For instance, Mullen Group’s acquisition of Pacific Northwest Investments (PNW) significantly enhanced its LTL freight capabilities in Northern Alberta and Yukon, Canada. This strategic move was driven by the company’s desire to serve remote communities and improve regional connectivity. Similarly, Canada Cartage’s acquisition of Coastal Pacific Xpress supported its westward expansion into the U.S. refrigerated freight market, capitalizing on the growing demand for temperature-sensitive logistics.
Globalization has posed challenges to supply chains, prompting logistics providers to expand their geographical reach. Acquisitions can be a more cost-effective alternative to organic growth for companies seeking to enter new markets. Skydropx’s acquisition of Frenet marked its entry into Brazil’s competitive logistics sector. By merging Frenet’s carrier integration platform with Skydropx’s technology, the company positioned itself as a leader in Latin American logistics, aiming to serve up to 200,000 customers regionally.
GCL’s acquisition of Magusa Global Cargo provided another avenue for strengthening its presence in Latin America’s music and luxury goods logistics markets. By leveraging Magusa’s operational expertise, GCL positioned itself to serve a substantial clientele in these sectors.
In Europe, Constellation Cold Logistics’ acquisition of CGI Coldstores expanded its capabilities in Ireland, establishing facilities in Dublin and Cork to support exports through major ports. This strategic move exemplified the growing significance of targeted acquisitions in achieving regional dominance within specialized logistics sectors.
Technological innovation was a prominent theme in December’s M&A landscape, with a notable 17% of deals focusing on software—a significant increase from the typical monthly deal share. This trend underscores the industry’s shift towards data-driven solutions and automation. DAT Freight & Analytics’ acquisition of Trucker Tools exemplified this transformation, integrating DAT’s load board and analytics capabilities with Trucker Tools’ real-time visibility and routing tools. This integration highlighted the transformative role of AI and predictive analytics in reshaping freight matching and pricing models. Similarly, Zebra Technologies’ acquisition of Photoneo advanced its warehouse automation capabilities by integrating 3D vision sensors and AI-powered robotics, underscoring the growing demand for intelligent supply chain solutions.
E-commerce growth fueled acquisitions in the last-mile delivery and fulfillment sectors, as companies sought to enhance their infrastructure to meet the escalating expectations of consumers. DHL Supply Chain’s acquisition of Brandpath Group provided small and medium-sized businesses with access to DHL’s extensive logistics network, thereby enhancing cross-border e-commerce services. In a similar vein, Cart.com’s acquisition of OceanX strengthened its fulfillment capabilities for high-volume beauty and wellness brands, expanding its omnichannel logistics network with new facilities in California and Ohio.
Several acquisitions in December 2024 targeted niche markets to diversify service offerings and cater to specialized customer needs. Logisticus Group’s acquisition of KingSize Rail solidified its position in renewable energy logistics, particularly for transporting wind-energy components. By integrating KingSize’s patented tools, Logisticus aligned itself with the growing demand for sustainable energy solutions. Similarly, Dupuy Group’s acquisition of Eland Logistics enhanced its expertise in organic warehousing and coffee logistics, expanding its reach into North America.
These acquisitions in the global logistics industry clearly demonstrate the strategic priorities of the sector: geographic expansion, technological advancement, and alignment with e-commerce. As global issues continue to complicate supply chains, companies are increasingly turning to mergers and acquisitions to enhance their capabilities, gain market share, and drive innovation. These deals reflect a rapidly evolving landscape where agility and investment in advanced solutions are crucial for maintaining a competitive edge.
As part of its Consultancy services, Transport Intelligence has provided critical and verifiable market share data to M&A and legal clients as part of data submissions to competition authorities. This data, covering freight forwarding, contract logistics and road freight, includes revenue and market share data for a number of jurisdictions across Europe, Asia and North America.
Ti Consulting plays an important supporting role in logistics M&A through accurate market intelligence. Find out more: https://ti-insight.com/ti-consultancy-ma/
Source: Ti Insight
Author: Paul Chapman
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