Consolidation in the logistics and supply chain market continues to drive merger and acquisition (M&A) activity in 2025, with deals rising slightly in the second quarter of the year, according to new figures from consultants BDO.
In Q2, the number of deals increased, with 21 transactions completed between April and the end of June. This compares to 18 in the first three months of 2025.
However, in the first half of the year, overall transaction volumes dropped on figures for H2 2024. There were 39 deals in total in H1, compared to 46 in the previous six months.
The BDO UK M&A Update Q2 2025 report revealed that more than two-fifths of deals (45%) were cross-border, with 90% of transactions in Q2 trade-related and more than a third (40%) involving tech-enabled businesses.
Strategic consolidation was a key driver in the market, as businesses strive to strengthen their core proposition.
Jason Whitworth, BDO LLP M&A partner, commented: “From an M&A perspective, consolidation in the market continues to influence strategic decision-making, as scale drives efficiencies and the ability to deliver the required return on investment across fleet and infrastructure.
“In what is a challenging market for many, logistics businesses continue to demonstrate strength and resilience in the face of rising costs and margin pressures, ongoing issues in accessing talent and strain being placed on global supply chains.
“As such, businesses are looking at ways to bolster their operations, whether that’s through consolidation, investing in AI and automation, as well as addressing the sustainability agenda through the adoption of electric fleets and sustainable fuels.”
Prominent deals in Q2 2025 included the merger of the UK’s leading parcel delivery company Evri with German giant DHL’s ecommerce arm, to create the UK’s premier door-to-door delivery service provider; together with Dutch listed InPost acquiring Yodel Delivery Network. Deals involving software or tech-enabled businesses included American tech firms Kaleris and Crisp acquiring Locus Software and Atheon Analytics, respectively.
Whitworth said: “While economic uncertainty and a lack of visibility over future earnings is holding back investment and moderating valuations, the plethora of deals in the second quarter of the year demonstrates that where scale and market leadership combine with a demonstrable plan for growth then value can still be delivered.”
