Trade buyers targeting geographic and service expansion continue to dominate UK logistics sector M&A this year, with strategic consolidation remaining a central route to growth for operators across the market.
According to a new report from BDO, 94 per cent of deals in the logistics and supply chain market during Q2 2026 were completed by trade buyers. There was just one direct private equity investment during the period - H2 Equity BV's investment in the MBO of KB Event - while close to two-fifths of deals (38 per cent) were cross-border transactions.
Transactional activity during the quarter remained broadly consistent with Q1, with a slight increase from 15 deals to 16. However, this was considerably lower on a year-on-year basis, with 22 deals recorded in Q2 2025.
Jason Whitworth, M&A partner at BDO LLP, commented: "M&A continues to play an important role in the growth ambitions of the logistics sector, with the latest figures reinforcing the value of consolidation when it comes to achieving scale, whether that's geographically or across service lines.”
"While transactional activity remains consistent in the first half of the year, activity levels are lower than in 2025. However, with the expectation of a more stable economic environment, following recent political developments, we are anticipating a more positive outlook for the remainder of the year.”
Discussing the prevalence of cross-border deals, Whitworth said that continuing strong appetite for UK assets among international buyers demonstrated “the value in quality market leading UK businesses with scale, quality customers and excellent service potential.”
The report found that, despite a marginal increase on Q1, tech-enabled logistics deals remained below the levels recorded over previous years. Just 19 per cent of deals in Q2 2026 were related to transport and logistics tech targets, down from 40 per cent in Q2 2025.
In the report, BDO asserted that, amid the rapid emergence of AI, investors are seeking greater clarity regarding the technology’s longer-term implications before committing to tech-focused investments.
Whitworth said: "Many logistics businesses are under pressure to move quickly with AI, but the most successful organisations are those that find the right balance between innovation and control.”
According to Whitworth, BDO’s recent regional logistics sector events have underscored a common misconception that AI will represent a single transformational solution to longstanding operational challenges across the industry.
“In reality,” he continued, “the greatest value often comes from hundreds of small improvements across an organisation, whether that's reducing manual reporting, automating routine communications, or improving planning decisions to collectively unlock significant efficiency gains. This more gradual and cautious approach to innovation is certainly being reflected in the investor market."
Despite lower levels of dealmaking in the logistics sector so far this year, appetite for acquisitions remains strong
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