The Next M&A Evolution in Transportation and Logistics

When it comes to the transportation and logistics sector, firms are always looking for the next cost-effective transportation service. One PE firm believes that following years of research into the sector, it has found the next opportunity. EQT , through its EQT Infrastructure VI (EQT Value-Add Infrastructure) fund, acquired Lazer Logistics , a yard management, trailer spotting, and facility logistics services provider in the U.S. and Canada. The target is North America’s largest service provider of outsourced yard management, mission-critical services facilitating tsafe, efficient, low-carbon movement of goods through the supply chain. Crosby Cook , a partner with EQT, tells Mergers & Acquisition s that the firm’s investment in Lazer Logistics results from its time researching transportation logistics as one of its four core sectors. “We think that the business is well positioned to benefit from some priority trends such as nearshoring or reshoring of industrial production in North America, increasing supply chain complexity from things like e-commerce and increased outsourcing due to electrification or decarbonization of the supply chain,” says Cook. EQT plans to make the most of decarbonization and electrification trends through the trailer spotting business segment. Trailer spotting is when a truck trailer is parked in a designated spot in the distribution yard, detached from the tractor, and then prepared to be ready-to-go for when its driver arrives. Cook says this represents a great application for the electrification of the fleet. The firm is in the early stages of implementing electric vehicles and EV charging applications and is being assisted by EQT’s industry professionals with a hands-on approach. Additionally, the firm has determined that the domestic supply chain and related components are impacted by e-commerce and nearshoring which will result in increasing intensity in the domestic supply chain. As a result, Cook says this will cause, “More truck moves and more touch points along the way of a transportation journey for a product as it eventually makes its way to consumers. And the most obvious manifestation of that is truck traffic and warehouses and so those are the things that impact Laser Logistics.” What are trends are you currently seeing in logistics? Let me know if you want to have a conversation at clipsky@themiddlemarket.com. – Cole Lipsky

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