Supply Chain Managers Remain Busy in 3rd Quarter

PwC transportation analyst Michael Portnoy cited how transportation infrastructure-related deals played a role in deal-making activity as they typically attract high investor interest in some certain environments.
By Jeff Berman, Group News Editor
November 14, 2012 - SCMR Editorial

In its recently released report, “Intersections: Third Quarter 2012 global transportation and logistics industry mergers and acquisitions analysis,” Pricewaterhouse Coopers (PwC) reported that even with a difficult global economy, transportation and logistics activity in the third quarter was strong.

Deals cited by PwC in the Intersections report represent all announced deals for the quarter-as opposed to completed deals only-and the report does not parse out deals that are withdrawn, intended, or pending.

Third quarter deal value—for deals valued at $50 million or more—was $15.3 billion and represents 37 announced deals with an average deal value of $413 million. There were fewer announced deals than the 50 from the third quarter of 2011, which totaled $16.3 million. Average deal value in the third quarter of $413 million was ahead of the second quarter’s $284 million and the third quarter of 2011’s $325 million.
“The deal numbers are down but not significantly,” said Jonathan Kletzel, U.S. transportation and logistics advisory leader for PwC, in an interview. “What we believe is influencing the deal making market is uncertainty in the Eurozone which was countered by an increase in U.S. activity.

PwC transportation analyst Michael Portnoy cited how transportation infrastructure-related deals played a role in deal-making activity as they typically attract high investor interest in some certain environments.

The report stated that PwC expects transportation infrastructure investment M&A is expected to be a market leader due to auctions under consideration in the U.S., Philippines, and the European Investment Bank’s 2020 Projection Bond Initiative.

Kletzel said that these things, coupled with the overall challenge presented by transactions budget gaps should lead to increased infrastructure activity on a global basis.
Of the 45 announced fourth quarter deals, 11 involved U.S.-based targets or acquirers, totaling $6.1 billion.

The breakdown by mode for deals valued at $50 million or more in the first quarter was as follows: 16 percent shipping, 16 percent passenger air; 30 percent, passenger ground, 14 percent logistics, 11 percent trucking, 5 percent, rail, and 8 percent other.



About the Author

image
Jeff Berman
Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff joined the Supply Chain Group in 2005 and leads online and print news operations for these publications. In 2009, Jeff led Logistics Management to the Silver Medal of Folio's Eddie Awards in the Best B2B Transportation/Travel Website category. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. If you want to contact Jeff with a news tip or idea, please send an e-mail to .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Report highlights executives' focus on direct store delivery processes.

UPS today released first quarter 2014 results, noting that fierce storms early in the year hurt their earnings.

Over $2 billion dollars in carrier overcharges go uncollected each year as shippers do not have the time or resources to collect refunds.

Last year at this time, retailers were relieved to learn that a tentative agreement on a new labor contract had been reached by dockside labor and management on the U.S. East and Gulf coasts. But not without considerable blood on the floor.

The National Retail Federation is encouraging maritime management and the union representing dockworkers along the U.S. West Coast ports to expedite pending contract negotiations and reach agreement on a new deal well in advance of the expiration of the current contract this summer.

Article Topics

News · Global · Logistics · Transportation · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.