From Freight to AI: February Sees Growth and Innovation in Logistics M&A
February 2025 witnessed a flurry of strategic acquisitions in the global logistics sector, showcasing key trends like consolidation in freight forwarding, growth in software-powered logistics solutions, and increased investments in specialized transport services. These acquisitions illustrate the industry’s ongoing evolution as businesses aim to solidify their market positions, expand service offerings, and boost their geographical footprint.
Enhancing global freight and logistics networks was a common theme among several acquisitions. Purolator, a Canada Post subsidiary, acquired Livingston International to strengthen its global trade expertise, particularly in customs brokerage and freight forwarding. This strategic move aligns with the increasing complexities of international trade regulations and evolving tariff policies, enabling Purolator to offer comprehensive solutions for cross-border commerce.
In a similar vein, SG Holdings acquired Morrison Express Worldwide Corporation to enhance its air freight and high-tech logistics capabilities. This acquisition expands SG Holdings’ presence in Asia and integrates Morrison’s expertise in ocean freight, improving supply chain resilience in a region known for its high-volume manufacturing and exports. Across the pond in Europe, VTG’s acquisition of Retrack Slovakia focuses on bolstering rail freight transportation between Eastern Europe and Germany, enhancing market presence and increasing rail logistics efficiency to reduce carbon footprints and drive supply chain sustainability.
A significant trend in February’s M&A activity was the emphasis on niche logistics services. Hellmann Worldwide Logistics acquired HPL Apollo to fortify its perishable logistics capabilities, catering to the escalating demand for efficient transportation of temperature-sensitive goods in both the U.S. and Latin American markets. Similarly, Hecksher’s acquisition of TCT AB enhances its capacity to handle dangerous goods and temperature-controlled transport across the Nordic region, meeting specific industry needs in pharmaceuticals, food supply chains, and hazardous materials.
The maritime logistics sector experienced notable consolidation, with Wallenius Sol acquiring Mann Lines to expand its RoRo and container vessel services across Ireland, Spain, and North West Europe, increasing service capacity and supporting digital transformation efforts. Hacklin Group’s stake in Nordic Chartering reinforced its shortsea shipping operations, particularly focusing on ice-classed multipurpose vessels, offering environmentally sustainable and cost-effective transportation solutions as an alternative to overland trucking.
In the field of port logistics, JST Ports & Logistics Holdings Ltd acquired RFS Works Ltd, broadening its rail logistics and material handling services in the UK’s port infrastructure market, becoming a key player in the domain. Moreover, technology and software-driven logistics acquisitions were prevalent, as evidenced by FedEx’s acquisition of RouteSmart Technologies to improve route optimization tools globally, enhancing delivery precision and reducing operational costs.
Cofactr’s acquisition of Factor.io introduced AI-driven supply chain automation to its platform, enhancing procurement tracking and supplier communication efficiency, particularly in regulated industries like aerospace and MedTech. Similarly, RailCube’s acquisition of Spark TS highlighted the increased demand for compliance and safety software in the railway logistics sector, streamlining compliance management as safety and operational transparency requirements intensify.
The third-party logistics market also witnessed significant activity in February, with Arvato acquiring Carbel LLC and United Customs Services, strengthening its U.S. warehouse network and trade compliance expertise to support the growing e-commerce and fashion logistics sectors. WWEX Group’s acquisition of JEAR Logistics marked an expansion into refrigerated freight, catering to the rising demand for cold-chain logistics in industries like pharmaceuticals and fresh food distribution.
Additionally, in road transport, Salvi Groupe’s acquisition of Dietrans bolstered its presence in the Spanish market, while Raben Group’s takeover of DGO Express enhanced its European groupage transport and warehousing capabilities, offering more efficient cross-border logistics solutions. The HOYER Group’s acquisition of Chile-based INTER-TANK and its expansion into Colombia reflect a strategic move to strengthen its liquid bulk logistics capabilities in Latin America.
Overall, the lively M&A landscape in February 2025 underscores the growing trend of consolidation in the logistics industry, driven by the imperative for operational efficiencies, technology integration, and global expansion. With regulatory changes, sustainability concerns, and the continued ascent of e-commerce shaping the sector, companies are strategically acquiring entities to bolster their capabilities and competitiveness in a rapidly evolving landscape.
