One Danish logistics company is adding ponies to its carousel.
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Carousel Logistics announced Monday it had acquired Logik Logistics, a British company that specializes in 24/7 on-demand logistics solutions, but also handles time-critical and scheduled logistics.
According to a release from Carousel, which, prior to the acquisition primarily serviced industries like agriculture, automotive, energy, industrial and life sciences, part of the reason for the acquisition is to broaden its reach. Logik’s specialty industries include retail , pharmaceuticals, publishing and more. Adding retail into the mix could prove valuable for Carousel, especially as the industry begins gearing up for the 2024 holiday season .
In addition to the new industries it will help the DANX Carousel-owned logistics company to serve, Logik provides the ability for Carousel to service its clients around the clock. It has systems in place to aid clients with road freight, aircraft charter, air freight , customs support and more.
Carousel did not disclose the terms of the deal, nor did it indicate how much it paid to acquire Logik.
Lars Ryssel, managing director of Western Europe for DANX Carousel, said the acquisition will ensure that, whatever type of service its clients seek out, the company will be able to help provide them.
“This acquisition not only expands our time-critical logistics capabilities but also strengthens our on-demand [and] ad-hoc service platform, enabling us to better serve our customers’ needs,” Ryssel said in a statement. “Logik’s expertise and round-the-clock availability will enable us to deliver even greater value and efficiency to our clients across Europe, regardless of the time or urgency. We welcome Logik Logistics International to the Carousel family.”
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This acquisition appears to be part of a larger trend in the logistics industry, where mergers and acquisitions have been commonplace for a variety of companies looking for a boost in their capacity. According to research from investment banking firm R.L. Hulett, in Q1 of this year, the number of mergers and acquisitions in the transportation and logistics industries came in at 263, up 4 percent from 253 in Q4 2023 and up 12.4 percent from 234 in Q1 2023.
The firm also found that the majority of M&A activity in the transportation and logistics sectors this year has been occurring in Europe, consistent with Carousel’s move to acquire Logik. R.L. Hulett’s research shows that over 51 percent of all M&A deals completed in the sector in Q1 were signed in the European market.
The growth of M&As in logistics likely won’t pause, the research predicted. Based on the volume of deals R.L. Hulett saw in Q1, it has projected that annual deal volume will increase year on year by 21.1 percent, with over 1,000 closed deals in 2024, which would be up from 869 deals in 2023. The company attributes its projections to a projected increase in freight activity , expectations for inflation to fall and the potential for interest rate cuts in the second half of the fiscal year. Its report also mentions that an increased interest in shipping goods directly to a consumer, whether by true DTC brands or by marketplace sellers, could be fueling the sector’s hunger for more efficient operations that span industries.
David York, managing director at Logik, said the acquisition will give Carousel the chance to better serve the two companies’ customers. According to a release, York will remain with the company to ensure a smooth transition.
“Joining forces with Carousel Logistics opens up exciting opportunities for our team and our clients. We look forward to leveraging our combined strengths to deliver unparalleled service to customers across Europe, whenever they need us,” York said in a statement.
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