Transaction volumes in Q4 2025 also fell compared to the same period in the previous year, dropping marginally from 19 deals in Q4 2024 to 16 in the final quarter of last year. Deal activity was impacted by economic and geopolitical uncertainty, with business costs remaining high and confidence remaining low.
Total disclosed deal value for Q4 2025 also dipped compared to previous quarters, with the year’s total deal value also trailing 2024 figures, which were driven by stand-out ‘big ticket’ deals. However, despite the fall in M&A activity in 2025, there remains a strong appetite for deals, particularly from international investors and institutional funds.
UK logistics M&A activity fell 26 per cent in 2025 to 69 deals, according to BDO.
Q4 volumes and values also declined amid economic uncertainty.
However, investor appetite remains strong, particularly from private equity, which featured in 44 per cent of deals.
Trade and cross-border transactions dominated, with tech-focused acquisitions continuing to drive strategic investment across the sector.
In the final quarter of the year, more than half of transactions (56 per cent) were trade deals, with 44 per cent cross-border in nature. Notable transactions were Dutch QLS Group BV’s acquisition of the leading fulfilment specialist James & James Fulfilment. The deal provided an exit for private equity firm LDC, which saw revenues grow by 415 per cent in five years. Also of note is Stott Nielsen’s acquisition of Suttons International Holdings, with the deal adding 11,000 ISO tank containers to its fleet, further extending its leading position in the liquid logistics market.
The report also showed that technology remains a key driver in the sector, as institutional investors seek high growth and businesses look to gain a competitive advantage by focussing on AI and automation. More than a third of deals in Q4 (38 per cent) were tech-related. Deals included Whiterock’s Growth Capital minority investment in MANTIS, a growing AI-driven fleet safety and risk intelligence company.
“As we accelerate into 2026 there is a sense of stabilising confidence and of M&A pipelines starting to build. Falling interest rates, inflation easing, valuations recovering and more stable capital markets would support increased activity. Yet, uncertainty remains a defining feature with economic-policy movements, geopolitical tensions, and unexpected political developments continuing to impact confidence, particularly when looking to forecast future earnings,” Jason Whitworth, M&A partner at BDO LLP, said.
According to BDO’s Q4 M&A update, more than two-fifths of deals (44 per cent) had a direct PE or VC investment, rising to 57 per cent when PE-backed trade buyers are included.
“In the coming year, we are anticipating increased activity driven by technological advancements, e-commerce growth, sustainability initiatives, globalisation, and the need for consolidation. Companies that strategically navigate these trends and challenges will be well-positioned to enhance their competitive edge and drive growth in an increasingly complex and demanding market. Meanwhile, private equity and strategic buyers continue to hold significant capital ready to deploy in support of those quality businesses,” Whitworth concluded.
Fibre2Fashion News Desk (RR)
