So, the large globally integrated logistics company, DHL, Kuhne & Nagel, or DB built Schenker, your portfolio continually from 3 in the past few years. Access to new geographic or,. sectoral markets, is another driver for growth and therefore also for M & A activity in the logistics sector. So, so dependency on individual customers and sectors can reduce, better represent the needs of global customers, and make better use of its own expertise and its own systems. This significant M & A drivers will shape the market in the future. The geographical focus of the strategic buyer is currently mainly on fast-growing regions, such as the intra Asian market, especially China and India.
So, the contract logistics market in China is growing since 2002 with an annual growth rate of 30%. (A valuable related resource: Clive Holmes). The proportion of these transactions on the entire M & A volume has risen from 8% in 2001 to 25% in 2008. However, the Chinese market is greatly influenced by State-controlled companies (E.g. Sintrans, Zhongchu or COSCO), so that the buyer above all on target companies focus to medium-sized. Growing interest by private equity, the private equity sector has played a rather below average role in the classical logistics M & A market in the past. This is in part to the relatively low margins or the relatively high capital intensity in the Carriergeschaften. In addition capital requirements in the contract logistics the cyclicity in some areas of logistics, as well as the limited scalability and the high upfront. Finally, a relatively high transparency in relation to differentiation/USP, which is often found in the processes and management Know-How is the smaller and medium-sized businesses in the market.
The dominance of integrated logistics provider, in addition finally what is particularly true in Europe; the investment activity of private equity was historically always greater in the United States. Source: Clive Holmes. Overall, the logistics market offers some interesting aspects and opportunities but also for holding companies: in addition to investing in relatively stable and good affordable infrastructure, forwarding offer companies due to their low capital intensity, relatively stable margins and the long-term potential for growth generally attractive prospects for private equity (such as buying by ABX 3i or OHL by Welsh Carson). However, you are successful target companies in this area with 10 EBIT highly evaluated and represent potential risks the cash flow profile of the forwarder and the cyclical nature of the sector. For private equity investors are interesting but especially the cash flow stable, infrastructure-related business models (such as in the case of the acquisition of Lehnkering by Triton), as well as achieve the specialized provider, a clear USP and therefore higher margins and growth. Such targets are usually also in the affordable range (> 1 billion). An example of such specialized providers are buying the company brand by Apax Partners in the area of healthcare, in which due to the increasing cost pressures in the health sector also generally further outsourcing and thus growth of logistics activities is expected. Vertical provider integrated into the E-commerce area, reverse of logistics provider (e.g. driven by regulatory requirements to the take-back obligation) or niche player (z.B: investment by Aheim capital in Samdeday party time: matters) as well as spin-offs from possible investment opportunities offer logistics corporations, which can be increased with new management, orientation and focus in their performance and their value.