Trucking Industry Sees Resurgence in M&A Activity
After a slowdown in 2024, the trucking industry is experiencing a resurgence in mergers and acquisitions (M&A) activity, driven by interest rate cuts and a more business-friendly administration. According to Left Lane Associates, a supply chain M&A advisory firm, the deal count may have been off 5% from 2023, but there is a lot of positive momentum leading into Q1 and beyond.
Notable Deals in 2024
Several notable deals took place in 2024, including:
- Forward Air’s Merger with Omni Logistics: Despite shareholder lawsuits and court injunctions, Forward Air closed its $3.2 billion merger with Omni Logistics in late January. The deal has been met with controversy, with some shareholders calling for a potential sale to private equity.
- Ryder System’s Acquisition of Cardinal Logistics: Ryder System expanded its dedicated offering with the $297 million acquisition of Cardinal Logistics, adding $1 billion in revenue to its dedicated transportation business.
- TFI International’s Acquisition of Daseke: TFI International doubled the size of its specialty truckload unit with the $1.1 billion acquisition of flatbed carrier Daseke, representing a 70% premium to Daseke’s share price.
- Proficient Auto Logistics’ Rollup of Car-Hauling Peers: Proficient Auto Logistics led a $180 million rollup of car-hauling peers, becoming a publicly traded company in May with a network of about 1,200 trucks producing nearly $400 million in annual revenue.
- RXO’s Acquisition of Coyote Logistics: RXO became the third-largest freight broker in North America with the $1.025 billion acquisition of Coyote Logistics from UPS, valuing Coyote at roughly 12 times trailing adjusted EBITDA.
- Knight-Swift Transportation’s Acquisition of Dependable Highway Express: Knight-Swift acquired Dependable Highway Express’ LTL operations for an undisclosed amount, its third LTL acquisition since entering the industry in 2021.
- Schneider National’s Acquisition of Cowan Systems: Schneider National acquired Cowan Systems for $390 million, expanding its dedicated top line close to $2 billion and its fleet to more than 8,400 tractors.
- FedEx’s Plan to Spin Off FedEx Freight: FedEx confirmed plans to spin off its LTL unit, FedEx Freight, over the next 18 months, leaving FedEx’s legacy air, ground, and parcel segments and FedEx Freight as two stand-alone publicly traded companies.
Other Notable Deals
Other notable deals in 2024 include J.B. Hunt’s acquisition of Walmart’s intermodal fleet of containers and chassis, Kenan Advantage Group’s acquisition of the largest dry bulk fleet in the Carolinas, and Transfix’s sale of its brokerage unit to NFI. Additionally, C.H. Robinson sold its European surface transportation business to Sennder Technologies, and rumors resurfaced about XPO shopping its European transportation unit.
Industry Outlook
The trucking industry is expected to continue its momentum in 2025, with well-capitalized companies generating significant cash flow and executing strategic acquisitions. As the industry moves further away from the freight recession, companies are anticipating a substantial uptick in sellers coming back to the M&A market.
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