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MOTORINDIA
l
June 2012
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ularly in North America) reflecting the distorting impact
of the $36.7 billion Burlington Northern Santa Fe deal
in the prior year, and the impact of “distressed M&A”
particularly in H211.
• Strong growth in EMEA fuelled by a number of
landmark transactions, including the divestment of TNT
Express for $7.2 billion.
• EBITDA and sales multiples increasing for the third
consecutive year, as EMEA multiples converge.
Reduced speed in second half
As graph 1 shows, the number of transactions in
2011 remained at a similar level to the previous year.
This demonstrates that 2010 was not an exception
and that the recovery from the 2009 post-recession
low point appears stable.
Indeed, the first half of 2011 recorded an increase
in the total value of transactions on the second half
of 2010. The second half decrease reflects the in-
creased uncertainty and reluctance of investors in
the wake of the debt crisis in the European Union.
In value terms, the 2011 average transaction size
was lower than 2010. Although there were large
strategic transactions in the first half of 2011, more
small transactions and bail-outs (“distressed M&A”)
were observed in the second half of the year, de-
pressing average values for the year.
Despite the drop in total transaction values com-
pared to 2010, the mergers and acquisitions market
for transport and logistics remains buoyant. In 2011
M&A transactions totalled $52.1 billion, twice the
equivalent figure in 2009.
The emerging trends suggest that 2012 is poised to
be a year for accelerating global M&A activity in the
transport and logistics sector.
Europe leads the way
The drop in total transaction value in the transport
and logistics sector in 2011 was most pronounced
in the regions of Asia-Pacific (ASPAC) and North
America, as shown in graph 2.
In North America the number of transactions was
stable. However the total transaction value declined
to $4.7 billion from $45 billion in 2010. This was
exceptional in North America, due to the purchase
of Burlington Northern Santa Fe by Berkshire Hath-
away with a transaction value of $36.7 billion. In
ASPAC there was also a (less dramatic) decrease in
transaction value. In Latin America the transaction val-
ue grew significantly, albeit from a low base.
However, the major story is the increase in transaction
value in the Europe, Middle East and Africa (EMEA)
market. Transaction values in 2011 were $30.1 billion
in comparison to $12.7 billion in 2010. The number of
transactions in EMEA was very similar to 2010, indicat-
ing a number of landmark transactions in 2011. These
road transportation