Top Trucking Deals of 2024
Trucking industry merger and acquisition deals took a slight dip in 2024, down 5% from the previous year. The year also saw the first interest rate cut in over four years, setting the stage for more constructive discussions around transactions. The team at Left Lane Associates noted that some deals were postponed until after the election, leading to a push in closings to early 2025.
Looking ahead, Left Lane’s president, Peter Stefanovich, anticipates a positive uptick in M&A activity as we move past the freight recession and under a new administration. Companies with strong cash flow were active in 2024, engaging in strategic acquisitions and even hinting at possible spinoffs. It was a year filled with notable deals in the trucking industry.
One such deal was the acquisition of Cardinal Logistics by Ryder System in February. This $297 million purchase included Cardinal’s fleet of drivers, trucks, and numerous locations, expanding Ryder’s dedicated transportation services significantly. Cardinal’s offerings in dedicated contract services, freight brokerage, final-mile, and contract logistics were forecasted to add $1 billion in revenue to Ryder’s dedicated transportation business.
Another prominent deal that stirred some drama was the merger between Forward Air and Omni Logistics. Despite shareholder lawsuits and discontent over the initial $3.2 billion price tag, Forward Air proceeded with the deal in late January. The fallout from the acquisition led to a revamp of Forward’s board and executive team as they navigate their legacy business and new ventures in air and ocean freight forwarding.
Although some shareholders have expressed concerns over Forward’s strategy and high debt leverage, the company’s stock price has seen fluctuations since the deal’s announcement in 2023. Shareholders have suggested exploring strategic alternatives, including a potential sale to private equity, to alleviate the company’s financial burden.
Overall, 2024 was a year of significant trucking deals, characterized by strategic acquisitions, transformational moves, and the anticipation of increased M&A activity in the coming months. As we move forward, the industry is poised for growth and evolution, driven by innovative partnerships and strategic investments.
