News / Busy week for logistics M&A activity, but overall a 'muted' year for deals

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Sources have claimed DP World has now completed its acquisition of Herport, the French logistics operator, a deal originally announced in April. 

The acquisition will propel DP World further into airfreight: Herport owns EAS International, a time-sensitive and premium freight forwarder.  

There are scant details of the deal, but it marks yet another acquisition by DP World, reportedly its seventh since May last year. The most recent was Swissterminal in March. 

The M&A market has had a strong week, with Menzies Aviation announcing it had completed the $305m acquisition of G2 Secure Staff, bolstering the handler’s US presence, where it claims to have become the largest independent aviation services provider. 

“G2’s expertise in ground services, including passenger assistance and cabin cleaning, complements and enhances Menzies’ ground, air cargo and fuel services portfolio,” it said. The deal is expected to boost Menzies revenues by 20%. 

Philipp Joeinig, group CEO of Menzies Aviation, said: “This deal isn’t just scale for the sake of scale. It’s high-volume, high-readiness infrastructure that meets growing airline demand for seamless, multi-airport service coverage.” 

In other M&A news, last week DHL eCommerce completed the acquisition of a minority stake in AJEX Logistics Services, a Middle Eastern supply chain and transport company. 

The size of the deal or shareholding was not revealed, but DHL said the purchase was “an important milestone for DHL’s expansion into the fast-growing Saudi Arabian parcel market, and AJEX’s expansion throughout the Middle East”. 

According to Pwc’s mid-year Transport & Logistics Barometer for M&A, this year is expected to be somewhat muted.  

But it added: “Ultimately … the reduced profitability from tariff impositions presents opportunities for well-capitalised entities to expand through acquisitions, as weaker competitors struggle to adapt.  

“The necessity to diversify supply chains and invest in new routes or infrastructure can drive strategic mergers and acquisitions, allowing firms to solidify their market positions.

“However, the unpredictability of trade policy poses risks that might lead some investors to delay or reconsider transactions until there is greater regulatory stability. Uncertainty may lead to hesitation and inaction on the one hand, but on the other it may increase opportunities for business and profits for those willing to take a risk.” 

Pwc noted that financial investors had taken the top spot in acquisitions, accounting for 61% of deal activity this year, and 74% of total deal value. Last year, strategic investors accounted for just over half of all deals, and 61% of the total value.