M&A activity in the Transportation & Logistics sector continued to soften in Q4 2025, with 102 closed transactions (LTM) versus 118 in Q4 2024, reflecting ongoing caution amid macro uncertainty and elevated financing costs. “Even as transaction volume softened, buyers demonstrated a willingness to pay up for differentiated logistics platforms with strong margins, technology enablement, and network relevance,” noted Michael Rosendahl, Managing Director at PCE. Strategic buyers remained dominant (~83%), driving consolidation to expand scale and optimize service networks.
Valuations surged, with median TEV/EBITDA climbing to 13.07x and TEV/Revenue easing to 1.32x – signaling selective premium pricing for high-quality assets despite muted volume. Investor sentiment holds steady, supported by resilient freight demand, infrastructure investment, and accelerating adoption of logistics technology. 1
Valuation trends reversed in Q4 2025, with EBITDA multiples spiking to 13.07x from 9.20x a year ago, while revenue multiples edged down to 1.32x. This divergence underscores buyer appetite for margin-rich, tech-enabled operators over pure top-line growth.
Deal flow concentrated on targets offering operational resilience, advanced fulfillment capabilities, and exposure to high-demand corridors – particularly last-mile delivery and integrated freight solutions. Strategic acquirers prioritized synergistic tuck-ins, while financial sponsors selectively pursued niche platforms amid tighter credit conditions.
Financial Buyers: Financial sponsors represented 17% of transactions (17 deals), maintaining a selective approach toward niche transport and logistics platforms. Key activity included Copley Equity Partners’ investment in Vital Delivery Solutions and McNally Capital’s acquisition of Airforce Turbine Service, reflecting sustained interest in asset-light and specialized service providers.1
The Transportation & Logistics sector underperformed relative to high-growth industries such as technology and healthcare but outpaced cyclical sectors like retail, automotive, and basic manufacturing, which faced margin compression and elevated borrowing costs. Global deal volume for transportation and logistics is projected to decline more sharply than previously expected, down ~8–10% YoY in 2025, driven by higher financing costs, capacity normalization, and cautious capital deployment. Despite these headwinds, strategic buyers remain active in niche segments such as last-mile delivery, aviation services, and cross-border freight, signaling selective consolidation opportunities as operators seek scale and operational efficiency.
Top U.S. States: Deal activity remained concentrated in major logistics hubs. Texas led with 15 transactions, followed by New York (8) as well as California, Georgia, Florida, and Illinois that each have 6, highlighting strong industrial infrastructure and distribution capacity in these regions.1
Cross-Border Trends: Cross-border activity was modest but strategically relevant, with international buyers continuing to target U.S. logistics assets for operational efficiency and market access. While disclosed values were limited, transactions such as Rubicon Technology’s acquisition of Janel Group illustrate global operators’ interest in expanding U.S. freight and fulfillment capabilities.
| Target | Buyer | Value ($mm) |
| Janel Group, Inc. | Rubicon Technology, Inc. | $46.00 |
| Vital Delivery Solutions LLC | Copley Equity Partners | n/a |
| Airforce Turbine Service, Ltd | McNally Capital, LLC | n/a |
| Eagle Rock Fulfillment Inc. | WeShip Express | n/a |
| Hogan Truck Leasing, Inc. | Enterprise Holdings, Inc. | n/a |
| Target | Buyer | Value ($mm) |
| Mallory Alexander International Logistics, LLC | DVSM, LP; CoPilot Global Logistics Holdings, LLC | n/a |
| AirProtect Group, Inc. | SouthernPlex Group, Inc | n/a |
| Target | Buyer | Value ($mm) |
| UAC USA | American Worldwide Agencies | n/a |
| CARMI Logistics LLC | The Nearshore Company | n/a |
Source S&P Capital IQ as of 1/4/2026 and PCE Proprietary Data
Opportunities: As capacity tightens and freight demand recovers unevenly, strategic acquirers may pursue deals that add operational scale, digital capabilities, and labor-effective platforms (e.g., 3PL/4PL tech), positioning them for market share gains.6
Risks: Labor market variability and policy pressures (e.g., commercial driver license enforcement, tariff-related cost increases) could compress margins for labor-intensive models, complicating integration and bid valuation in M&A deals.6
Predicted Activity: Transportation and logistics M&A is expected to emphasize technology adoption (automation, digital freight platforms) and modal consolidation (e.g., rail-trucking service offerings), as firms seek efficiencies amid cost and capacity challenges.6
Michael Rosendahl |
Eric Zaleski |
Kyle Wishing |
|
Data Assumptions This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only. Glossary EBIT - Earnings Before Interest and Taxes Sources:
|