UK M&A supply chain & logistics activity Q2 2024

In the second quarter of 2024, the UK's supply chain and logistics sector experienced notable trends in investment and mergers and acquisitions (M&A) activity. While there was a decline in transaction volumes, the market remained active with significant deals and a positive outlook for future investments.

**Decline in Transaction Volumes**

The first half of 2024 saw a decrease in deal activity within the UK logistics and supply chain management sector. According to BDO's 'UK M&A Update – Q2 2024' report, 21 deals were completed between April and June, down from 26 in the first quarter and 27 in the final quarter of 2023. Despite this decline, nearly 38% of these deals were cross-border, indicating sustained international interest in the UK market. ([yorkshiretimes.co.uk](https://yorkshiretimes.co.uk/article/A-More-Stable-Environment-Set-To-Drive-Investment-Appetite-In-Logistics))

**Significant M&A Activity**

Despite the overall decline in deal volumes, the sector witnessed substantial M&A transactions. A notable example is Apollo Global Management's acquisition of UK parcel delivery company Evri from Advent International for approximately £2.7 billion. Evri, formerly known as Hermes UK, delivers over 12 million parcels weekly and held a 14% share of the UK parcel market by volume in 2022. ([ft.com](https://www.ft.com/content/080a2c3f-363b-4b72-9283-9557fb8b1b4c))

**Global Trends Influencing the UK Market**

On a global scale, supply chain-related deals totaled $39 billion across 19 transactions in Q2 2024, making it the largest theme among the top 200 deals. This global trend underscores the strategic importance of supply chain capabilities, influencing UK market dynamics as companies seek to enhance their logistics operations. ([globaldata.com](https://www.globaldata.com/media/thematic-research/global-ma-activity-q2-2024-boosted-supply-chain-finds-globaldata/))

**Outlook and Future Expectations**

Industry experts anticipate that a more stable economic environment will drive increased deal activity in the UK's logistics and supply chain sector. Factors such as technological advancements, the rise of e-commerce, and the need for resilient supply chains are expected to attract further investments. Private equity firms and corporate investors are likely to pursue opportunities that offer strategic value and growth potential in this evolving landscape. ([yorkshiretimes.co.uk](https://yorkshiretimes.co.uk/article/A-More-Stable-Environment-Set-To-Drive-Investment-Appetite-In-Logistics)

In summary, while Q2 2024 experienced a dip in transaction volumes, the UK's supply chain and logistics sector remains dynamic, with significant deals and a positive outlook driven by global trends and economic stability.

- [thetimes.co.uk](https://www.thetimes.co.uk/article/evri-sold-to-apollo-global-for-27-billion-dsskl8lt8)
- [wsj.com](https://www.wsj.com/articles/apollo-scoops-up-delivery-service-evri-from-advent-2ce551d4)
- [ft.com](https://www.ft.com/content/080a2c3f-363b-4b72-9283-9557fb8b1b4c)