The mega announcement between TransForce and Contrans last week is the latest deal signaling a heating period for mergers and acquisition activity, according to analysts.
After several slow years, mergers and acquisitions are on the rise again in the Canadian trucking industry, according to PwC’s Capital Markets Flash.
“We’re seeing companies become increasingly aggressive, not taking no for an answer as hostile activity heats up,” said Nicolas Marcoux, national deals leader, PwC.
As Today’s Tucking reports, big trucking firms are getting bigger, while some mid-sized companies are being acquired, PwC explained.
“Valuation is high in a ‘risk-on’ environment, as corporate and private equity buyers search for growth and value creation opportunities,” Marcoux said.
And it’s not just trucking. Canada had a quiet first quarter (Q1), but the merger and acquisition market accelerated in the second quarter (Q2) of 2014.
Q2 2014 saw 748 deals with a total value of $45.8 billion in 91 days, which is 10 percent higher in both value and volume from Q1 and a 20-percent jump from Q2 2013.