2011 promises to be a very active year for mergers and acquisitions in the logistics sector.  One quick example of this activity is private equity group Lazard Alternative Investments, which recently sold its interest in Container and Pooling Solutions (CAPS) to Brambles for $16.4 million. CAPS provides intermediate bulk containers and automotive containers to clients, while Brambles provides clients with supply chain and information management solutions. Lazard acquired CAPS in 2005 for $10 million.

The strong demand for logistics companies is not a recent development.  As evidence of this, the logistics industry has seen an huge imbalance between exits and investments in the last few years. Investors have only sold seven logistics-related companies since the beginning of 2009.  However, during the same period, investors purchased 68 logistics firms.

There were only six exits between 2009 and the end of 2010. Investment activity, on the other hand, was strong as the numbers grew to 30 companies acquired in 2009 and 33 logistics firms acquired in 2010. The new year is off to a strong start as well.  With five completed investments and only one exit so far, 2011 promises to be a good time to sell a logistics-related business.  The most active financial buyers include H.I.G. Capital with four deals and the Charterhouse Group with three deals under their belts.

MidCap Advisors is in regular contact with a number of private equity groups that have strong interest in acquiring logistics companies.  If you own a logistics business and would like to discuss your options, please call the MidCap Advisors office nearest you.