DOCSLIB.ORG

CLOSING the DEAL Consolidation Trends in Transportation & Logistics

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
CLOSING the DEAL Consolidation Trends in Transportation & Logistics 9/28/2017 CLOSING THE DEAL Consolidation Trends in Transportation & Logistics September 28, 2017 Chris Dalton Greg Lafin Jeff Ronsse Partner, National Practice Leader Managing Director Transaction Services BKD Corporate Finance Managing Partner [email protected] [email protected] [email protected] Matt Klauser Gerry DeBiasi Director Partner, Kidd & Co. Transaction Services [email protected] [email protected] 1 9/28/2017 TO RECEIVE CPE CREDIT • Participate in entire webinar • Answer polls when they are provided • If you are viewing this webinar in a group . Complete group attendance form with • Title & date of live webinar • Your company name • Your printed name, signature & email address . All group attendance sheets must be submitted to [email protected] within 24 hours of live webinar . Answer polls when they are provided • If all eligibility requirements are met, each participant will be emailed their CPE certificates within 15 business days of live webinar INTRODUCTION • Thank you for joining! • Consolidation in transportation & logistics – interest & importance . Transportation industry is highly competitive & fragmented – consolidation is attractive . Correlation with consumer spending . Increase in value added or niche services – key differentiators . Technology-based services 2 9/28/2017 INTRODUCTION • Numerous perspectives for today’s discussion . Corporate Finance . Transaction Services . Audit/Tax . Private Equity TRANSPORTATION & LOGISTICS INDUSTRY UPDATE – HY 2017 OUTLOOK BKD Corporate Finance, LLC (BKDCF) has seen an increase in the activity of mergers & acquisitions (M&A) consolidation occurring in the trucking & transportation segment. This trend is expected to continue throughout the next five years, with market experts forecasting annual growth of 3 percent Key External Drivers Include Keys to M&A Consolidation Key Highlights • Industrial Production Index • Access to quality personnel • Lowest performing subsector stock in Q2 of 2017 was Reverse Logistics, up • Freight Transportation Services Index • Customer relationships 0.3% • Consumer spending • Optimum capacity utilization • On average, EV/LTM EBITDA multiples • Price of crude oil • Technology for the subsectors were up by 0.3x over the prior quarter & up 1.3x on a year • E-commerce sales • Governmental policies & regulation over year basis • Very competitive landscape • Increased supply chain complexity Source: Harris Williams, Lincoln International 3 9/28/2017 INDUSTRY AT A GLANCE: LOGISTICS • The 3PL market is forecast to grow at a significant rate owing to the increasing focus of manufacturers on their core businesses& subcontracting the activities, where they have less expertise • The growth in the e-commerce industry is expected to drive the 3PL market due to an increase in demand for fast delivery, efficient inventory management, freight forwarding & individualized shipping time • The players in the e-commerce sector are focused on selling goods online, thus necessitating the need for 3PL market providers EV/EBITDA 12.8x 12.4x 12.8x 11.7x 12.0x 11.2x 12.0x 10.7x 10.0x 8.9x 8.8x 8.8x 8.0x 6.0x Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 3PL Reverse Logistics 3PL MARKET TO SURPASS $1,100 BILLION BY 2024 Source: IBIS World, Lincoln International TRENDS & OUTLOOK – LOGISTICS • Shippers are also anticipated to shift more of their transportation operations onto 3PL providers as they try to simplify their supply chain & focus their core business • Large multinational corporations & even small domestic retailers or manufactures are increasingly relying upon 3PL companies to provide transportation services that could simplify & manage supply chains that stretch over continents • Industry revenue is projected to climb at an annualized rate of 3.6% to $198.6 billion over the five years to 2021 Products & Services Segmentation 5.90% 22.40% Total $166.5Bn 71.70% Transportation Management Warehousing and Related Services Other Services Source: S&P Capital IQ, Lincoln International 4 9/28/2017 INDUSTRY AT A GLANCE: TRUCKING • Expected annual growth to be 2.2%+ over the next five years • Upticks in consumer confidence & spending will boost demand for goods transportation • The industrial production index is expected to increase in 2017 & 2018 • Further increases in per capita disposable income & consumer confidence are expected to cause consumer spending to rise EV/EBITDA 12.0x 10.9x 11.0x 10.5x 9.8x 10.0x 9.1x 9.4x 9.0x 8.2x 8.0x 7.4x 7.4x 6.9x 6.9x 6.5x 6.5x 6.6x 7.0x 6.1x 6.1x 6.0x 5.0x 4.0x 3.0x Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Freight Forwarding/Intermodal Truckload Carriers Contracted Transportation Improving economic conditions & a rise in diesel prices will benefit the industry Source: IBIS World, Lincoln International TRENDS & OUTLOOK – TRUCKING • Industry consolidation will allow larger companies to leverage their size, resources & expand their geographic reach • The industry’s largest players have been able to attract more business, enabling them to outperform smaller companies, which account for the vast majority of industry market share • Growing trade volumes will support steady industry revenue growth • Due to fragmentation, operators experience intense price competition & generally earn low profit margins Products & Services Segmentation 24.50% 38.10% Total $222.4Bn 37.40% Other Transposrations Services Truckload Carriers Less-Than Truckload Carriers Source: IBIS World 5 9/28/2017 GF DATA – PRIVATE EQUITY MULTIPLES NAICS Code: 484 Truck Transportation (21) Enterprise Total Enterprise Revenues ($ in TTM Rev Enterprise Enterprise # of EBITDA Margin % Value Range Value ($ in millions) millions) Growth % Value/Revenue Value/EBITDA Transactions 10 - 25 16.9 30.6 7.0 16.4 0.6 4.5 2 25 - 50 33.1 43.5 17.6 17.5 0.9 5.3 2 50 - 100 58.8 54.2 8.8 21.8 1.1 5.3 1 100 - 250 177.5 216.5 15.8 12.6 0.8 6.8 1 Total 67.7 82.4 13.7 16.9 0.9 5.5 1.6 Total Enterprise Revenues ($ in TTM Rev Enterprise Enterprise # of Year EBITDA Margin % Value ($ in millions) millions) Growth % Value/Revenue Value/EBITDA Transactions 2005-2006 27.9 38.7 28.7 21.4 0.9 4.1 3 2007 97.7 132.3 9.8 11.6 0.8 6.5 4 2008 105.6 93.8 24.6 19.5 1.0 5.2 3 2009-2011 39.7 54.7 6.5 14.5 0.8 5.7 4 2012-2013 127.2 168.3 10.8 15.3 0.9 6.1 3 2014-2016 31.4 32.6 8.7 20.0 1.0 5.3 5 Total 67.7 82.4 13.7 16.9 0.9 5.5 22 Source: S&P Capital IQ, Lincoln International GF DATA – PRIVATE EQUITY MULTIPLES NAICS Code: 4885 Freight Transportation Arrangement (6) Enterprise Total Enterprise Revenues ($ in EBITDA Enterprise Enterprise # of TTM Rev Growth % Value Range Value ($ in millions) millions) Margin % Value/Revenue Value/EBITDA Transactions 10 - 250 73.3 131.0 15.5 18.4 1.2x 6.8x 6 Total 73.3 131.0 15.5 18.4 1.2x 6.8x 6 Total Enterprise Revenues ($ in EBITDA Enterprise Enterprise # of Year TTM Rev Growth % Value ($ in millions) millions) Margin % Value/Revenue Value/EBITDA Transactions 2003-2007 77.4 65.4 14.4 22.8 1.7x 6.6x 3 2009-2012 69.2 196.6 16.5 13.9 0.7x 7.0x 3 Total 73.3 131.0 15.5 18.4 1.2x 6.8x 6 Source: S&P Capital IQ, Lincoln International 6 9/28/2017 INDUSTRY ACQUISITIONS Industry Acquisitions ($ in Millions) Net Transaction Multiple of Multiple of Date Acquiring Company Seller (Description) Revenue EBITDA Value Revenue EBITDA Sept-5-2017 Daseke R&R Trucking Sept-2-2017 Carlyle Group United Road Vehicle Transporter Aug-17-2017 Quick International Courier Unitrans 95 325 0.29 June-10-2017 Penske Truck Leasing Old Dominion Truck Leasing Apr-10-2017 Knight Transportation Swift Transportation 2,971 4,008 480 0.74 8.35 Dec-27-2016 Daseke Hennessy Capital Acquisition 626 Oct-28-2016 Transforce CFI 558 530 115 1.05 4.85 Jul-30-2015 Celadon Group Inc. Buckler Transport 14 13 1.09 Jul-6-2017 Heartland Express Interstate Distributor 117 Mar-02-2015 CRST International, Inc. Pegasus Transportation, Inc. - - - Dec-07-2015 Leonard's Express, Inc. WCD Trucking - - - Oct-30-2015 XPO Logistics, Inc. Con-way Inc. 3,057 5,745 497 0.53 6.16 Aug-18-2015 Apax Partners LLP Quality Distribution Inc. 801 988 69 0.81 11.67 Aug-18-2015 United Parcel Service, Inc. Coyote Logistics, LLC 1,800 2,100 - 0.86 Roadrunner Transportation Jul-28-2015 Systems, Inc. Stagecoach Cartage and Distribution, LP. 40 34 7 1.18 5.71 Jan-20-2015 Celadon Group Inc. Taylor Express, Inc. 43 38 - 1.13 Has been acquired by Minneapolis, MN BKD Corporate Finance acted as financial advisor to JBS Logistics in this transaction 7 9/28/2017 Trailer Rental Company Has been acquired by Private Investors BKD Corporate Finance acted as financial advisor to the Trailer Rental Company in this transaction PANEL DISCUSSION Chris Dalton Partner, National Practice Greg Lafin Leader Managing Director Jeff Ronsse Transaction Services BKD Corporate Finance Managing Partner [email protected] [email protected] [email protected] Matt Klauser Director Gerry DeBiasi Transaction Services Partner, Kidd & Co [email protected] [email protected] 8 9/28/2017 QUESTIONS? CONTINUING PROFESSIONAL EDUCATION (CPE) CREDITS BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
Load more

Recommended publications
  • Talking Tesla Elon Musk
    Bridge to Someday Top 10 of 2017 Waiting for a new U.S. crossing PG. 10 Products that topped our list PG. 36 The Business Magazine of Canada’s Trucking Industry EVERYONE’S TALKING TESLA W 5C4. Will it be the game changer? January 2018 www.todaystrucking.com plus Yard Dogs Tools to keep your trailers rolling Sleep Well Canadian Mail Sales Product Agreement #40063170. Return postage guaranteed. Newcom Media Inc., 451 Attwell Dr., Toronto, ON M9 Researchers fascinated by fatigue Contents January 2018 | VOLUME 32, NO.1 5 Letters 7 John G. Smith 10 16 9 Rolf Lockwood 31 Mike McCarron NEWS & NOTES Dispatches 13 MacKinnon Sold Ontario fleet sold to Contrans 22 Heard on the Street 32 36 23 Logbook 24 Truck Sales 25 Pulse Survey 26 Stat Pack 27 Trending 30 Truck of the Month In Gear 44 Yard Dogs Features Keep trailers moving in the yard with 10 Bridge to Someday specialized equipment Work on the Gordie Howe International 48 Southern Stars Bridge continues, but at a slow pace By Elizabeth Bate Cabovers gaining ground in Mexico 16 Talking Tesla 51 Product Watch Elon Musk (partially) unveils his electric truck. 52 Guess the location, Will it be the game changer he promises? By John G. Smith win a hat 32 Sleep Well Good health begins with proper sleep. Researchers want to know if drivers are getting what they need. By Elizabeth Bate 36 The Top 10 Here’s the tech that topped our editor’s list in 2017 By John G. Smith Cover Image: Courtesy of Tesla For more visit www.todaystrucking.com JANUARY 2018 3 BORN TO BE Designed with decades of experience BETTER.
    [Show full text]
  • Refrigerated
    REFRIGERATED What they Track Product Needs • Operating Ratio • Fuel efficiency / low rolling resistance • Revenue per Loaded Mile • Long, even tread wear About the Business • Asset Utilization (of expensive trailers) • Casing durability and retreadability • On-time deliveries (in right condition) • CARB/Smartway • Refrigerated “Reefer” carriers not only carry fresh food, but • At temperature (thermal efficiency) • Smooth, quiet ride also pharmaceuticals, tobacco products, fine art and • CSA Scores antiques, personal care products, and chemicals. • TCO (Fuel, Weight, and CPM) • Reefers drive hundreds of miles in the blazing sun while protecting cargo that must be maintained at a specific Vehicle Specs temperature from dock to dock. Service Needs • If a shipment spoils, it can cost thousands of dollars • Majority classes 6-8 in replacement and shipping fees, as well as the • Annual miles: 125,000+ • Preventative Maintenance potential loss of customers. • Primarily Line Haul applications • Help improve CSA scores • Fleets are willing to spend more on their equipment • Both straight and tractor-refrigerated trailer • Reduce the possibility of DOT interventions and ensure to help prevent spoilage. • Majority tire diameter: 22.5 compliance • This means they are also likely to spend • Breakdown solutions more on premium quality tires. Long-haul reeFers want light weight trailers that can carry • Mounted wheel programs • Fleets must deliver on time, so they are focused on higher payloads. They prefer aluminum structural members • Reduce operating costs and complexity through fuel keeping their fleet in top-notch shape to avoid mechanical and thinner walls, with fewer door openings. These trailers efficiency, uptime maximization, tire lifecycle program breakdowns and/or delays.
    [Show full text]
  • 1 in the United States District Court for the Northern
    Case: 1:11-cv-01983 Document #: 1 Filed: 03/22/11 Page 1 of 22 PageID #:1 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS CHICAGO DIVISION PJC LOGISTICS, LLC, : : Plaintiff : : v. : Civil Case No. 11-cv-1983 : A&R LOGISTICS, INC.; ACE HARDWARE : JURY TRIAL DEMANDED CORPORATION; ALLIED VAN LINES, INC.; : ATLAS VAN LINES, INC.; BEST WAY : EXPRESS, INC.; BULKMATIC TRANSPORT : COMPANY; CARDINAL TRANSPORT, INC.; : CARTER EXPRESS, INC.; CELADON GROUP, : INC.; CENTRAL TRANSPORT NORTH : AMERICA, INC.; CON-WAY FREIGHT, INC.; : CON-WAY, INC.; DAWES TRANSPORT, INC.; : deBOER TRANSPORTATION, INC.; DO IT : BEST CORP.; DOHRN TRANSFER COMPANY; : EARL L. HENDERSON TRUCKING COMPANY; : EQUITY TRANSPORTATION COMPANY, INC.; : G & F TRUCKING LEASING, INC.; GULLY : TRANSPORTATION, INC.; H.O. WOLDING, : INC.; JBS LOGISTICS, INC.; JOHNSON : TRUCKING OF NEENAH, INC.; MARTEN : TRANSPORTS, LLC; THE MASON AND DIXON : LINES, INCORPORATED; NORTH AMERICAN : VAN LINES, INC.; ORMSBY TRUCKING, INC.; : POINT DEDICATED SERVICES, LLC; R&M : TRUCKING CO.; ROADRUNNER : TRANSPORTATION SERVICES, INC.; ROEHL : TRANSPORT, INC.; RUSH TRUCKING : CORPORATION; SCHNEIDER NATIONAL : CARRIERS, INC.; STANDARD FORWARDING, : LLC; SUPER SERVICE, LLC; THOMASON : EXPRESS, LLC; TRANSPORTATION : SERVICES, INC. (TSI); UNIVERSAL : TRUCKLOAD SERVICES, INC.; USF : HOLLAND, INC.; and VENTURE LOGISTICS : SERVICES, INC. : : Defendants. : : 1 Case: 1:11-cv-01983 Document #: 1 Filed: 03/22/11 Page 2 of 22 PageID #:2 COMPLAINT Plaintiff PJC Logistics LLC (“PJC Logistics” or “Plaintiff), by way of Complaint against defendants A&R Logistics, Inc.; Ace Hardware Corporation; Allied Van Lines, Inc.; Atlas Van Lines, Inc.; Best Way Express, Inc.; Bulkmatic Transport Company; Cardinal Transport, Inc.; Carter Express, Inc.; Celadon Group, Inc.; Central Transport North America, Inc.; Con-Way Freight, Inc.; Con-Way, Inc.; Dawes Transport, Inc.; deBoer Transportation, Inc.; Do It Best Corp.; Dohrn Transfer Company; Earl L.
    [Show full text]
  • Trucking Industry Update – January 2018
    January 2018 Bridgepoint Insights Trucking Industry Update Industry Valuation Multiples At Historical Peak Executive Summary Key Takeaways . Trucking company valuation multiples are currently 10.4x, . Trucking company valuations and earnings are highly up 103.9% from the most recent cycle trough of 5.1x in cyclical due to the nature of the industry and general January 2016; current multiples are at their highest level macroeconomic factors as well as specific business in 8 years characteristics; cycle timing is critical to maximize transaction value . Given the public equities markets run, industry valuations remain low historically relative to the S&P 500, trading at . Understanding and appropriately communicating the 77.1% of the broad market, well below the historical Company’s unique business mix is critical to a successful median of 85.1%; however, this is up from the last cycle process and value maximization trough of 47.1% in July 2016 . Industry valuations maintaining upward trends above . The ATA tonnage index dropped 5.7% in December 2017 historical levels for the first time in nearly 3 years and there to 142.9 despite 2017 as a whole up 3.9% compared to are solid industry tailwinds; the near-term cycle window for 2016; the all-time high was 151.0 reached in November sellers is open 2017 . Bridgepoint Merchant Banking advises trucking company . WTI crude rose to $66.16 on January 24, 2018, an owners seeking liquidity that timing is attractive to consider increase from the most recent low of $42.53 reached in exploring monetization, financing and other strategic options June 2017 and well below highs of $100+ in 2014 Trucking Valuation Cycle 12.0x TEV / LTM EBITDA $2.0 Current 10.4x Historical Median 7.7x $1.8 10.0x Peak 10.4x Trough 5.1x $1.6 TEV ($ billions) ($ TEV $1.4 8.0x $1.2 6.0x $1.0 $0.8 TEV / LTM EBITDA 4.0x $0.6 $0.4 2.0x $0.2 0.0x $0.0 TEV TEV / LTM EBITDA Historical Median Note: Composite composed of selected public comparables as listed on page 3.
    [Show full text]
  • Administration of Donald J. Trump, 2017 Remarks at a Meeting With
    Administration of Donald J. Trump, 2017 Remarks at a Meeting With Members of the Trucking Industry on Health Care Reform March 23, 2017 The President. We've got some big truckers here. You guys are the biggest guys in the business, huh? I'm looking around. I read about you in all the magazines. Good. And you're the ones that make more money though, which is—[laughter]. Participant. It's supply and demand. [Laughter] The President. That's good. Great. [Laughter] It's great to be with you, and I don't know whose starting it off. Should I start it of? I'll start it off. Okay? First of all, I want to thank you for your support on health care. That's been great. I know you had a big problem with Obamacare, and everybody does, so welcome to the crowd. But I very much appreciate you being here, and I very much appreciate your support. I'm honored to welcome all of the many truckers and the trucking industry leaders to the White House. And I must say, really, you are the leaders. You are the big ones. I'm very impressed I was able to get you. I think it was the White House that was able to get you. [Laughter] No one knows America like truckers know America. You see it every day, and you see every hill, and you see every valley, and you see every pothole in our roads that have to be redone. Old Dominion Freight Line, Inc. Chief Executive Officer David S.
    [Show full text]
  • 2019 Sponsor / Exhibitor Prospectus
    2019 SPONSOR / EXHIBITOR PROSPECTUS ™ SEP. 30-OCT. 2, 2019 | DALLAS,Women In Trucking TEXAS | 2019 Accelerate! Conference & Expo | 1 Join your transportation, logistics and supply chain peers at the fifth annual Accelerate! Conference & Expo, hosted by the Women In Trucking Association. Learn about critical transportation issues and trends, along with perspectives and the positive impact women have on the industry. Build business in this integrated conference and exhibition setting. Attach your company, brand, and reputation to our mission: To generate dialogue and action around the importance of gender diversity in transportation and logistics. Ellen Voie, President and CEO Women In Trucking SEP. 30 - OCT. 2, 2019 Women Make A POSITIVE SPONSOR & EXHIBITOR Impact On Transportation PROSPECTUS Exceptional 1,000+ Expected Table of Contents: Leaders to Attend Common strengths Leverage a diverse work- 3 About Women in Trucking include intuitive/logical force, develop leaders, thinking, team-building, strategize to engage 4 Membership Demographics communication. more female drivers. 5 Sponsorship & Booth Packages 8 Sponsorship & Booth Pricing 60+ Educational 100+ Brands As Sessions Part of Expo 9 Exhibition Floor Plan Tracks: Operations, Safety, Network with peers, top Compliance, HR/Talent executives, providers of 10 Sponsorships - Special Events Management, Leadership, transportation and logistics Sales & Marketing. services and products. 12 A La Carte Options 15 2019 Conference Venue Look for many New sponsor options this year! Women In Trucking
    [Show full text]
  • Transportation & Logistics
    TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017 www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. 0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JUNE 2017 WHAT WE’RE READING CONTENTS LOGISTICS | FORTUNE 500 HIGHLIGHTS E-COMMERCE LOGISTICS IMPACT . M&A TRANSACTIONS This year’s Fortune 500 list of largest US publicly owned companies, released June . PUBLIC MARKETS OVERVIEW 7, underscores a growing rift in the transportation sector: Those companies . STOCK PRICE PERFORMANCE involved in e-commerce, last-mile delivery, and supply-chain solutions continue to . OUR GROUP grow faster than traditional freight-moving competitors. That is a sign of the growing impact of what is been called the “Amazon Effect” on distribution and order fulfillment, and greater specialization in last-mile and dedicated transportation. It also reaffirms those more dependent on traditional freight CONTACTS markets suffered as those markets stagnated in 2016. That shift is likely to touch more of the Fortune 500 transport operators in 2017.
    [Show full text]
  • Transportation & Logistics Industry Update
    TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016 www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. 0 TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ FEBRUARY 2016 WHAT WE’RE READING CONTENTS LOGISTICS | ADDRESSING FUTURE DEMAND LEVELS NOW . M&A TRANSACTIONS Increased variation in what buyers require at a given time means it is no longer . PUBLIC MARKETS OVERVIEW sufficient to rely on traditional baseline ordering patterns. Meeting demand on a . STOCK PRICE PERFORMANCE more consistent basis therefore requires complex stock management systems, building and maintaining key relationships throughout the supply chain and a . OUR GROUP review of the triggers that influence buying behavior. Recent years have seen a concerted focus on suppliers adopting more products lines – both in terms of volume and variation – in order to react quickly to the demands of buyers, which can often come at a moment’s notice. CONTACTS Supply Chain Digital UNITED STATES TRUCKING | LOGISTICS CHIEF EXPECTS TRUCKERS TO ADAPT TO NEW RULES Frank Mountcastle Logistics provider C.H. Robinson Worldwide Inc. says the trucking industry should Managing Director [email protected] absorb new federal safety regulations with relative ease despite sharp divisions +1 (804) 915-0124 among trucking companies over the rules. The requirement for electronic logging devices and restrictions on driving hours for truck drivers will raise costs for some Jason Bass smaller trucking companies, John Wiehoff, the company’s chief executive, said in Managing Director an earnings conference call with analysts on Wednesday.
    [Show full text]
  • Q3 2015 Transportation & Logistics
    TRANSPORTATION & LOGISTICS Q3 2015 CONTACTS STATE OF THE TRANSPORATION M&A MARKET Experts continue to view the Transportation & Logistics industry as a measure of the health of the Len Batsevitsky overall economy and thus far, 2015 has been a strong year for providers of commercial Director transport. The industry has been aided by significantly lower oil prices, increased personal (617) 619-3365 [email protected] consumption, expanded manufacturing and the continued rise of e-commerce as a viable retail channel. As a result, many transportation companies are experiencing improved financial Daniel Schultz performance which, coupled with a robust middle market M&A environment, has led to a Director of Business Development significant increase in deal activity. Furthermore, the industry’s high fragmentation will serve to (617) 619-3368 increase M&A activity as companies look to consolidate, increasing their efficiency through scale. [email protected] Overall, 2015 is shaping up to be a strong M&A year for the Transportation & Logistics industry Matthew Person because thus far through Q4, there have been 104 transactions. If that pace continues Associate (617) 619-3322 throughout the rest of calendar year, we could see nearly 140 M&A transactions during 2015, [email protected] which would near the record breaking high of 144 transactions in 2012. Transportation and Logistics Transactions 160 144 140 113 120 108 108 104 100 80 80 60 40 20 0 BOSTON 2010 2011 2012 2013 2014 YTD CHICAGO 9/30/2015 Sources: Capital IQ and Capstone Partners LLC research LONDON LOS ANGELES In addition, valuations have remained stable over the past several years with recent transaction PHILADELPHIA multiples for asset-light logistics businesses generally north of 8x LTM EBITDA, while traditional SAN DIEGO asset-heavy freight carriers (primarily in the trucking sub-industry) have traded at a range of 5x to 7x.
    [Show full text]
  • Location of North American 3PL Headquarters
    Location of North American 3PL Headquarters California - 18 HQs New Jersey - 14 HQs Agility Logistics - Irvine* Alliance Shippers - Englewood Cliffs Aspen Logistics - Temecula Damco USA - Madison* CaseStack - Santa Monica Flash Global Logistics - Montville D.W. Morgan Company - Pleasanton Geodis Wilson - Iselin* Number of HQs Dependable Distribution Centers - Kuehne + Nagel - Jersey City* Los Angeles National Retail Systems - North Ingram Micro Logistics - Santa Ana Bergen 1 Johanson Transportation Service NFI Industries - Cherry Hill - Fresno Panalpina - Morristown* Megatrux Companies - Rancho Port Jersey Logistics - Monroe 2-4 Cucamonga Township Menlo Worldwide Logistics - San Priority Solutions International - Mateo Swedesboro 5-9 Nexus Distribution - Oakland The Gilbert Company - Keasbey OOCL Logistics (USA) - Fountain Tucker Company Worldwide - Valley* Cherry Hill 10+ Pantos Logistics - Rancho Wallenius Wilhelmsen - Woodcliff Dominguez* Lake* Performance Team - Santa Fe Yusen Logistics - Secaucus* Springs Serec of California - Industry Source Logistics - Montebello Illinois - 13 HQs The RK Logistics Group - Fremont UTi Worldwide - Long Beach A&R Logistics - Morris Weber Logistics - Santa Fe Springs AFN - Niles AIT Worldwide - Itasca ArrowStream - Chicago Caterpillar Logistics Services - Morton DSC Logistics - Des Plaines Echo Global Logistics - Chicago Fidelitone Logistics - Wauconda Hub Group - Downers Grove LeSaint Logistics - Romeoville RR Donnelley - Chicago Sankyu USA - Wood Dale* * Denotes regional headquarters. SEKO Logistics
    [Show full text]
  • Transportation & Logistics M&A Update September 2015
    www.peakstone.com Transportation & Logistics M&A Update September 2015 Transportation & Logistics Industry Update | September 2015 Transportation & Logistics M&A Update . U.S. transportation & logistics M&A continues to see strong activity. Year-to-date 2015 transaction volume of 93 deals is on pace to surpass 2014 deal volume of 99 transactions. For the year-to-date 2015 period, strategic buyers accounted for 87% of the transportation & logistics M&A transactions with financial buyers making up the difference. During 2014, strategic buyers accounted for approximately 81% of the transactions. Asset-light transport and logistics companies are trading at premium valuations compared to the S&P 500. Many larger, publicly traded transportation and logistics companies have been very active in pursuing acquisitions. Notable publicly announced 2015 transactions: o XPO Logistics entered into a definitive agreement to acquire Con-way for approximately $3.5 billion. o United Parcel Service acquired Coyote Logistics for approximately $1.8 billion. o Apax Partners acquired Quality Distribution for approximately $780 million. o Echo Global Logistics acquired Command Transportation for approximately $410 million. 1 Transportation & Logistics Industry Update | September 2015 Transportation & Logistics – M&A Market Overview U.S. Transportation & Logistics Transactions by Buyer Type U.S. Transportation & Logistics Transaction Multiples 160 12 10.1x 140 10 8.6x 32 8.3x 120 NM NM 7.6x 8 7.0x 100 6.7x 25 23 18 19 12 80 6 16 16 60 106 4 40 79 81 83 80 81 64
    [Show full text]
  • Transportation & Logistics
    www.mercercapital.com VALUE FOCUS Transportation & Logistics Second Quarter 2018 Second Quarter 2019 | Article: The Last Mile In This Issue The Last Mile 1 Industry Macro Trends 3 Trucking 6 Rail & Intermodal 9 M&A Activity 11 Public Company Performance 15 Mercer Capital’s Value Focus: Transportation & Logistics Second Quarter 2019 FEATURE ARTICLE Most marathon runners will tell you that the last leg of the race is the hardest. In the same vein, the final leg of freight deliv- ery is often the most complicated. This final leg – the delivery of a package from the warehouse or fulfillment center to the The Last Mile customer’s address – is known as the “last mile,” though the actual distance can vary. But why is the last mile important and how are companies attempting to “solve” the last mile problem? One reason is the increased popularity of online shopping. Another reason is its relative expense compared to other aspects of the logistics chain. According to a Honeywell estimate, last mile logistics account for 53% of total logistics cost. Finally, as more of the world’s population moves to urban areas in the coming decades, last mile difficulties will only grow. Rural last mile delivery poses its own challenges, such as low customer density. Although greater population density in cities is advantageous for concentration of deliveries, the traffic congestion and lack of parking cancel out many potential benefits. UNestimates put 55% of the world population living in an urban population right now, but projections show that this number will increase to 68% by 2050.
    [Show full text]