Infrastructure “mega deals” continued to drive up deal value in the transportation and logistics industry in the second quarter of 2013, despite subdued merger and acquisition activity overall, according to PwC US, the U.S. firm of PricewaterhouseCoopers.
In the second quarter, there were 31 transportation and logistics transactions worth $50 million or more, totaling $15.2 billion, compared with 51 transactions totaling $14.3 billion in the second quarter of 2012.
The increase in deal value over the same period last year was attributed to the three infrastructure mega deals, worth more than $1 billion in total, that occurred in the second quarter. Average deal size also increased to $490 million for the quarter, versus $281 million in the same period last year.
“There is a historical correlation between economic output and transportation and logistics M&A, which lends explanation to the decreased volume of deals on a global level,” said Jonathan Kletzel, U.S. transportation and logistics leader for PwC, in a written statement.
“Given the high M&A volumes that occurred in late 2012, we’re seeing transportation and logistics players, especially in the airline space, focused on integration and driving value from those deals,” he explained. “However, ongoing opportunities for consolidation, especially in emerging markets, along with the need for infrastructure, will remain key drivers for potential M&A activity in the rest of the year.”
Strategic investors represented 61 percent of the transportation and logistics deals in the second quarter, but financial investors have shown an “increased appetite” for shipping and port deals, according to PwC. Additionally, Asian acquirers engaged in nearly half of all global deals.