Transportation & Logistics Industry Update

Harris Williams Deal Spotlight

screen_shot_2019-08-21_at_4.09.15_pm.pngCardinal Logistics Management Corporation

Harris Williams advises Cardinal Logistics Management Corporation (Cardinal), a portfolio company of funds advised by Centerbridge Partners, L.P., on its sale to an affiliate of H.I.G. Capital. Cardinal is a leading, nationwide third-party logistics provider.  

Press Release

 

 

What We’re Reading

Logistics | How Much are Digital Freight Brokerages Really Worth?

"If everything goes right, the market cap of all digital brokerages in the United States could total $30 billion in 10 years.  Over the past few years, large digital freight brokerages (DFBs) backed by venture capital have emerged in the global transportation and logistics industry. Although in North America startups dominate media coverage of DFBs, incumbents have made large investments in technology to digitize their brokerage operations."

Trucking | Small and Mid-Tier Fleets Leverage Technology to Level Playing Field

"Technology in the form of electronic logging device systems is bringing new services to small and mid-tier fleets. Technology has allowed these fleets to band together and take advantage of aggregated discounts, receive sophisticated real-time telematics, use digital freight matching platforms and be a part of innovative business models."

Rail | Canada Invests Over $100 Million in Rail-Related Infrastructure Projects

"The rail infrastructure projects receiving funding are part of a multi-year, billion-dollar program by the Canadian government to invest in key trade corridors. The most recent announcement details plans to fund infrastructure improvements at the Port of Montreal. The government said on August 12 that it plans to spend C$18.5 million to improve truck flows at the port."

Marine | Near-Record Volumes Are in the Cards in Coming Months

"Despite new tariffs kicking in on September 1st, retail container ports bound for the United States are pegged to come in at close to record levels through the end of 2019. It is neither swift or simple for retailers to alter supply chains, meaning that volumes should remain impressive."

Air | Freight Forwarder Consolidation Continues

"Although consolidation in the sector is unlikely to slow down, the rationale for acquisitions is changing.  Acquisitions which enhance end-to-end capability will become the new trend – acquisitions which helped create Panalpina’s perishables network or UPS’ pharmaceuticals offer, for example – smaller targets that added specific capability, assets, technology, expertise etc."

Public Markets Overview1

screen_shot_2019-08-21_at_4.18.30_pm.png

screen_shot_2019-08-21_at_4.18.58_pm.png

Stock Price Performance1

screen_shot_2019-08-21_at_4.19.49_pm.png

screen_shot_2019-08-21_at_4.20.06_pm.png

M&A Transactions1,2,3

Recent M&A Transactions

screen_shot_2019-08-21_at_4.20.58_pm.png

Our Group

Harris Williams is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.

Recently Closed T&L Deals

screen_shot_2019-08-21_at_4.21.57_pm.png

Deep Experience Across T&L Sectors

screen_shot_2019-08-21_at_4.25.35_pm.png

Public Comparables1

screen_shot_2019-08-22_at_11.54.34_am.png

screen_shot_2019-08-22_at_11.54.55_am.png

screen_shot_2019-08-22_at_11.55.15_am.png

screen_shot_2019-08-22_at_11.55.37_am.png

1. S&P Capital IQ

2. MergerMarket

3. Pitchbook

 

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.