UK logistics M&A appetite strong despite slower 2025

Dealmaking appetite in the UK logistics market remains strong, despite the sector seeing a sharp drop in activity during 2025. While M&A was dampened by economic and geopolitical factors last year, interest from overseas and institutional buyers means that demand for UK deals is solid.

According to the latest ‘UK M&A Update Q4 2025, Logistics and Supply Chain Management’ report from accountancy and advisory firm BDO LLP, there were just 69 transactions completed in the UK logistics and supply chain management sector last year. This was a 26 per cent decrease from the 93 deals completed in 2024.

During Q4 2025, transaction volumes were down marginally from the same period a year earlier, dropping from 19 deals in Q4 2024 to 16. There was also a year-on-year dip in total disclosed deal value during Q4 2025, while the total for 2025 was also down on 2024, which saw a number of major transactions.

BDO attributed 2025’s slower activity to geopolitical and economic factors, as businesses continued to face high costs and confidence remained low. However, the report also noted that there is still significant appetite for logistics M&A, with demand particularly strong among international investors and institutional funds.

During Q4, cross-border transactions accounted for 44 per cent of the total, with the remaining 56 per cent being trade deals. Major cross-border transactions included the acquisition of James & James Fulfilment by Dutch operator QLS Group BV, in a deal that provided an exit for private equity firm LDC.

Continuing private equity and venture capital involvement in the sector was also a notable feature, with 44 per cent of deals featuring direct PE or VC investment, a figure that rose to 57 per cent when including deals undertaken by private equity-backed trade buyers.

Reflecting the ongoing technological changes that are shaping the sector, technology also remained a key deal driver. According to BDO, 38 per cent of deals last year were tech-related, with many of these deals involving institutional investors targeting high-growth businesses and trade buyers using M&A to gain access to AI and automation.

BDO LLP M&A Partner Jason Whitworth commented: “As we accelerate into 2026 there is a sense of stabilising confidence and of M&A pipelines starting to build. Falling interest rates, inflation easing, valuations recovering and more stable capital markets would support increased activity.”

“Yet, uncertainty remains a defining feature with economic-policy movements, geopolitical tensions, and unexpected political developments continuing to impact confidence, particularly when looking to forecast future earnings.”

Over the coming year, Whitworth continued, BDO expects to see increased activity levels, “driven by technological advancements, e-commerce growth, sustainability initiatives, globalisation, and the need for consolidation.”

He added: “Companies that strategically navigate these trends and challenges will be well-positioned to enhance their competitive edge and drive growth in an increasingly complex and demanding market. Meanwhile, private equity and strategic buyers continue to hold significant capital ready to deploy in support of those quality businesses.”

Find out more about 2025 M&A trends in the global transport and logistics industry

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