Inbound Logistics | September 2009 | Digital Issue

TRENDS

NEWS & EVENTS SHAPING THE FUTURE OF LOGISTICS

‹ CONTINUED FROM PAGE 16

T&L M&A Contraction M erger and acquisition move- ment in the transportation and logistics (T&L) sector has plunged with the economy, according to PricewaterhouseCoopers’ recent Q2 2009 M&A analysis. At the current rate, the 31 deals announced thus far in 2009 with a value of $4.5 billion, places M&A activ- ity 67 percent below 2008 figures–when 189 deals were announced with a total value of $96 billion. While global deal activity reflects the current state of the economy, the impor- tance of BRIC (Brazil, Russia, India and China) countries, particularly China and Russia, to the T&L deal market is increas- ing. During the first half of 2009, BRIC acquirers and targets accounted for 20 percent and 26 percent of the deals in the sector, respectively. This is up from 15 percent and 18 percent in 2008. Additionally, Asia and Oceania con- tributed to the majority of transactions greater than $50 million at 39 percent, and accounted for approximately one- third of deals greater than $50 million. “Given the current state of the econ- omy and difficult access to capital, it is not unexpected that the volume and value of deal activity in the transpor- tation and logistics sector has dropped in the first half of 2009 in compari- son to 2008,” says Kenneth Evans, U.S. transportation and logistics leader for PricewaterhouseCoopers. “The BRIC nations, however, continue to show promise and growth.” Interest in transportation and logistics targets has shifted among modes during 2009 compared with 2008. In particular, the relative interest in passenger air and trucking targets has increased signifi- cantly. Passenger air targets accounted for 30 percent of all deals in the first half of the year, up from 17 percent in 2008. Trucking targets also saw an increase, ris- ing to 12 percent in the first half of the year from only five percent in 2008. ■

F UP THE CHAIN PEOPLE ON THE MOVE

Innovation Fuels , a New York-based renewable energy company that manufactures, markets, and distributes second-generation biodiesel fuel, has named Paul Niznik  as vice president of strategic opera- tions, managing its New England market. He will be responsible for spearheading the development of the company’s New Haven terminal,

which will feature barge, truck, vessel, and rail access to heated storage for 1.2 million gallons of biodiesel fuel. Niznik joins Innovation Fuels after leading a biofuels research and consulting company and developing new biofuels for heating applications. Q Justin Gilpin has been named chief executive officer of Kansas Wheat , a cooperative venture between the Kansas Wheat Commission and Kansas Association of Wheat Growers. A 10-year industry veteran, Gilpin served as the association’s marketing specialist from 2000 to 2006, then began working at General Mills, where he coordinated logistics for three flour mills. Q B&G Foods , a manu- facturer and distributor of high-quality, shelf-stable foods, has hired William F. Herbes as executive vice president of operations. He will assume responsibility for the company’s supply chain functions, including all logistics, purchasing, planning, and co-packer manufacturing. Herbes comes to B&G with 24 years of experience in operations and supply chain management at Warner Lambert and its successor companies, Pfizer and Cadbury Schweppes.

18 Inbound Logistics • September 2009

FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND

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