News / 2024 a 'year of consolidation' among SME forwarders, as M&A kicks off

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The forwarding market is predicted to see a wave of consolidation among smaller independent forwarders over the next year, following a series of acquisitions in the past 24 hours.  

One senior freight forwarder told The Loadstar “2024 will be the year of consolidation”, as SME forwarders look at selling their businesses and would-be acquirers continue to wield significant funds for the right targets. 

“The shite times are here, and deepening, and [SME] valuations are good, based on the last three years, so they can max their returns. 

“Companies that did well [during the pandemic], and haven’t had to give it to shareholders, have their war chests. Also, companies that are PE/VC backed can spend other people’s money willynilly,” they said. 

Acquisitive Danish 3PL Scan Global Logistics (SGL), owned by private equity, with Luxembourg-based CVC Capital Partners becoming a major shareholder in February, announced today that it would expand its global reach through the purchase of its South Korean partner, ENK Logistics.  

“We have been doing business in South Korea for many years, but it will be different to operate under our own brand with new colleagues,” SGL global CEO Allan Melgaard said. 

“SGL is consistently strengthening its market position and global presence… This acquisition aligns with SGL’s strategy to be present in the largest economies worldwide,” the company added. 

The ENK Logistics buy follows SGL’s growing interest in the Pacific region, having acquired Australia’s Pioneer International Logistics in 2020 and Orbis Global Logistics in New Zealand in 2021. 

ENK Logistics owners Hoe Jick Yang and Kwon Jik Yang said: “We are already well-positioned in a highly competitive and robust market in South Korea, and our collaborative efforts will enhance our local expertise and knowledge.  This benefits our customers, who will now gain access to an extensive global network, expanded offerings, and significant business opportunities.” 

In a separate development, Global Critical Logistics (CGL) today announced the acquisition of Time Frame Logistics and Xtreme Forwarding.  

“Acquiring these two New Zealand companies with capabilities across our core end-markets strengthens our geographic footprint in a key cornerstone of the Asia-Pacific region, while also giving us direct access to local customers seeking to grow beyond their home markets,” said GCL CEO Daniel Rosenthal.

These deals followed yesterday’s announcement that Dutch forwarder Share Logistics had agreed to buy compatriot VN Logistics, which specialises in the chemicals, renewables (solar panels and batteries), cosmetics and c-commerce verticals, and follows a long-standing partnership between them. 

“After successfully cooperating on a variety of projects, we are excited to finally join forces with VN Logistics. The company will enhance our contract logistics capabilities and strengthen our overall global integrated logistics service offering to customers,” said Tristan Bierenbroodspot, group CEO of Share Logistics. 

“The [200] specialised staff of VN Logistics will bring both new and additional expertise in high-growth industries, which supports our long-term strategy that focuses on true industry specialisation,” he added.