5 Ways Strategic Alignment Drives M&A Activity in Transportation and Logistics: Study

Dealmaking in transportation and logistics (T&L) gained renewed traction in the second half of 2025 as buyers prioritized strategic alignment over scale. Acquirers focused on subsectors offering defensible growth, operating efficiency, and exposure to high-barrier markets. Activity spanned the full value chain—from infrastructure to asset-light platforms—with capital flowing toward technology modernization, resilient supply chains, and specialized logistics services, according to data released by PwC.

Here's what defined dealmaking in late 2025.

• Rail consolidation is driving adjacent activity. The proposed Union Pacific–Norfolk Southern merger is creating momentum across the rail ecosystem. Investors are evaluating suppliers and services supporting track infrastructure, railcar maintenance, leasing, inspection technology, and transloading operations—segments with regulatory complexity, contracted revenue, and expansion potential—as they look to capture value around rail industry consolidation.

• Specialized logistics are in demand. Providers are reshaping portfolios around sectors with structural growth and pricing power. Activity remains high in pharmaceutical and healthcare logistics, dedicated transport, temperature-controlled logistics, and reverse logistics, areas tied to recurring volumes and mission-critical supply chains. These niches are increasingly viewed as long-term plays on demographic trends and shifting consumption patterns.

• Technology-led transportation solutions are gaining share. Digital platforms that enhance visibility, routing, and capacity utilization are commanding premium valuations. M&A activity is especially strong among software-enabled third-party logistics (3PLs), freight marketplaces, and automation providers that help offset labor costs and improve service reliability.

• Financing conditions are improving. Easing interest rates and a modest rebound in freight volumes are enabling buyers to revisit deals that were paused earlier in the cycle. Sponsors are re-entering the market through continuation funds, minority recapitalizations, and private credit-backed transactions, especially in capital-intensive or complex carve-outs.

• Tariff clarity is reshaping trade flows. While tariff policy has largely stabilized, shifts in trade lanes and sourcing strategies are affecting how providers allocate capacity and model profitability. These changes, particularly for Asia-U.S. and Mexico-U.S. corridors, are forcing operators and investors to reassess utilization, margin exposure, and network design.

Key developments to watch in transportation and logistics:

• Rail consolidation outcomes will shape access. The Surface Transportation Board (STB)’s ruling on the Union Pacific–Norfolk Southern merger will influence how buyers model network access, pricing pressure, and capital deployment.

• Capital costs are easing. Expected interest rate cuts are improving credit access and enabling dealmakers to revive deferred deals. But as capital becomes cheaper, competition for logistics and infrastructure assets may intensify.

• Trade clarity is supporting strategy. More predictable tariff frameworks and trade policy are boosting confidence in nearshoring, regional integration, and cross-border modeling. Buyers are now more able to assess long-term profitability with fewer geopolitical surprises.

• Tech enablement remains a theme. As customer expectations evolve, platforms offering real-time visibility, automation, and network agility will continue to stand out. Digital capabilities are increasingly viewed as core to operational resilience and service differentiation.

• Specialized assets remain attractive. Niche categories like pharma logistics, temperature-controlled transport, and reverse logistics align with broader consumption patterns and shifting demographic trends. These areas offer resilient demand profiles and embedded customer relationships.