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The Market

What’s driving the M & A market due to the generally fragmented market structure was the M & A activity in the logistics market historically mainly through expansion and market consolidation efforts of strategic buyers. Private equity was in transactions > 1 billion transaction volume only rarely active (E.g. exception: Apollo/TNT) Logistics). Despite the high historical M & A activity among strategists, the market structure, especially in the global contract logistics market and especially in European road transport is still very fragmented, the 5 largest combine only 16% and 9% market share in. In the field of forwarding, the 5 largest competitors take around 30% of the total. It is generally assumed that the consolidation in the industry in the future will proceed further. If you have read about E Scott Mead already – you may have come to the same conclusion. Key drivers for this are: 1 economies of scale and network effects: In transportation cost advantages due to a better utilization of assets arise with increasing volumes (cross-dock locations, higher loading factors or avoiding empty runs, etc.), or in the form of more favourable purchasing conditions of cargo space in the Forwardingbereich. But also in the contract logistics are degressive cost histories because of better utilization and standardization in the operational area, E.g.

in the form of more favourable purchasing conditions for transport services by Third-party (costs by up to 40% of sales) or the more efficient land use (multi-user warehouses) as well as through standardization and scale effects in cross-cutting functions (especially IT). So the announced cost synergies at 2-5 were % of sales, past logistics transactions what % is significant considering the average EBIT margins of around 4-5. Especially in road transport, the size of own network, brings consisting of a sufficient fleet of vehicles and the number of loading hubs in the region of focus, competitive advantages through a more efficient route planning, cheaper prices and more flexible deliveries to customers. 2. Economies of scope and vertical expansion: The major customers for comprehensive logistics solutions along the entire value added chain, provided by some of the few partners require above all to reduce the complexity of their own, (lead logistics provider).