Logistics M&As Span Last Mile, Freight Forwarding and Trucking

Glenn Taylor
·4 min read

After a subdued year in logistics M&As in 2023 when high interest rates stalled investment activity, more consolidation in the industry is brewing to start 2024.

This month has already seen deals like the Shift-Yodel delivery acquisition and a tech transaction with Blue Yonder acquiring transportation planning software Flexis.

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And major transportation and logistics players like Ryder System and AIT Worldwide Logistics also recently brought in new companies to fortify their wider offerings. While Ryder scooped up freight brokerage and last-mile firm Cardinal Logistics, and AIT reeled in an ocean-centric freight forwarder, Global Transport Solutions (GTS) Group.

On Thursday, Omaha, Neb.-headquartered ADL Final Mile acquired the assets of fellow last-mile delivery company, Florida-based Sonic Transportation & Logistics for an undisclosed sum.

ADL Final Mile, itself a result of a merger between delivery firms ADL Delivery and Capital Express in 2022, says it has “significant growth capital at its disposal” and is still “actively seeking acquisitions and development opportunities.” ADL Delivery covers the southeastern U.S. has 600 trucks in its fleet and boasts more than 15 locations, while Capital Express operates entirely across nine Midwestern states.

With Sonic in tow, ADL Final Mile will accelerate its expansion in Florida and across the broader Southeast, according to president Thomas Jowers. Headquartered in Tampa, Fla., Sonic touts same-day and next-day delivery capabilities throughout the Sunshine State, as well as a customizable dedicated route service. The company also offers medical- and pharmaceutical-specific couriers.

Another third-party logistics (3PL) and multimodal transportation company, Radiant Logistics, has acquired two partner businesses Select Logistics, Inc. and Select Cartage, Inc. Terms of the deal have not been disclosed.

The deal came two weeks after Radiant saw revenue plummet 28 percent to $201.1 million, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) falling 52 percent to $7.7 million.

In total, the company has more than 100 combined company-owned locations and partner-owned “agent stations.” But the firm said in a Feb. 8 earnings call that it would continue to acquire independent agent stations as well as nonaffiliated 3PLs.

Adding to Radiant’s domestic and international freight forwarding businesses, as well as its truck and rail brokerage services, Select brings global freight forwarding capabilities of its own. The company is expected to transition to the Radiant brand and will combine with existing company-owned operations in south Florida.

More acquisitions appear to be a realistic next step for Radiant, according to founder, chairman and CEO Bohn Crain.

“We remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully re-levering our balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions and stock buybacks,” Crain said in the call.

GXO chief financial officer Baris Oran shared a similar sentiment in a Feb. 13 earnings call, saying the contract logistics provider has a “very sizable” M&A target pipeline in all geographies and verticals, with the company “actively working” in a number of possible projects.

Citing the September PFSweb deal, GXO CEO Malcolm Wilson said, “When we enter a new vertical, typically, we’re focused on growing that new vertical… If there’s a business out there that we like—good quality, it’s in good condition and we can see big synergies—of course, we’d be interested also in [acquiring] those.”

Another privately held logistics firm, Birmingham, Ala.-based PS Logistics, acquired two separate businesses to kick off 2024. The company enhanced its trucking and flatbed operations with the deals, first unveiling the acquisition of Buddy Moore Trucking (BMT) last month.

BMT includes a 130-truck flatbed division, a 120-truck dedicated van division and a non-asset logistics division. Organizationally, BMT will operate as a standalone division of PS Logistics and continue to be managed by CEO and president Buck Moore.

PS Logistics’ subsidiary Blair Logistics later scooped up the flatbed division of ELS, which also offers heavy-haul and intermodal freight services. In acquiring a fleet of more than 90 tractors and more than 240 over-length flatbed trailers, PS Logistics now has over 500 power units and 1,250 over-length trailers.

The terms of the each deal were not disclosed. Since 2016, PS Logistics says it has successfully acquired 25 trucking operations and five non-asset logistics operations across the United States.

The largest deal so far this year goes to Forward Air, which merged with Omni Logistics in late January in a $2.1 billion deal after months of back and forth in court that saw the exit of both companies’ CEOs.

Over in Europe, Ceva Logistics, the third-party logistics subsidiary of ocean freight giant CMA CGM, fostered another mega deal with the acquisition of U.K.-based logistics services company Wincanton for 566.9 million pounds ($716.3 million).