PwC Report Cites Steep Decline in Transportation and Logistics M&A Activity

From logisticsmgmt.com: “Given today’s current economic conditions, it does not come as a major surprise that transportation and logistics merger & acquisition (M&A) activity was down in the first quarter. That was the main takeaway of a recent report from Pricewaterhouse-Coopers (PwC). The firm’s quarterly report, “Intersections: First-quarter 2009 mergers and acquisition analysis,” said that in the first quarter there were 18 announced (M&A) deals in the transportation and logistics sectors worth $50 million or more. This is a steep drop off from the fourth and third quarters of 2008, which came in at 43 and 46 deals, respectively.”

“The average value of deals—for those with a value of $50 million or more—also suffered, with the first quarter average coming in at $159 million, compared to 2008’s $513 million average. PwC said this was largely attributed to a lack of large deals worth $1 billion or more. These deals were replaced by minority stake purchases, which represented 39 percent of the first quarter’s deals and were ahead of 2008’s 30 percent. It is important to note that deals cited by PwC in the report represent all announced deals for the first quarter—as opposed to completed deals only—and does not parse out deals that were withdrawn, intended or pending.” PwC Report Cites Steep Decline in Transportation and Logistics M&A Activity

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