Blog Author

Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

Major Airline Declares Bankruptcy

Spirit Airlines filed for Chapter 11 bankruptcy protection, citing significant financial losses, rising competition, and mounting debt. Despite efforts to cut costs, the airline struggled to maintain profitability in the budget travel sector. This bankruptcy highlights the increasing pressure on U.S. carriers to adapt to fluctuating consumer demand and rising operational costs, raising questions about the long-term viability of ultra-low-cost business models in an evolving aviation industry.1

Logistics M&A Activity Remains Resilient Despite Headwinds

Despite a cooling freight market, logistics mergers and acquisitions have maintained steady momentum. Notably, Heniff Transportation Systems recently acquired the Wisconsin-based Hagen Johnson Group, expanding its food-grade tank truck operations. Industry experts anticipate increased deal activity in 202. Factors supporting this activity include sustained demand for supply chain services, investor interest in tech-enabled logistics solutions, and private equity firms actively pursuing opportunities.2

Trump’s 10% Tariff, A Trade Shake-Up or Economic Gamble?

Former President Donald Trump is proposing a 10% universal tariff on all U.S. imports to boost domestic manufacturing and reduce dependence on foreign goods. While the move could incentivize local production, it risks raising consumer prices and straining international trade relationships. Experts predict potential shifts in global supply chains, with some manufacturers relocating production closer to the U.S., while others might explore alternative markets to avoid tariff impacts.3

Supply Chain Goals Hindered by U.S. Labor Shortages in Manufacturing

As production shifts back to the U.S. to strengthen supply chains, labor shortages impact the logistics sector. With 100,000 manufacturing jobs unfilled monthly and 3.8 million roles needed in the next decade, delayed production creates ripple effects across supply chains, disrupting transportation schedules and increasing freight demands. These challenges highlight the need for workforce development for manufacturing and logistics operations to ensure the smooth flow of goods in nearshored supply chains.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • n/a
  • n/a
  • n/a

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • PrimeFlight Aviation Services, Inc.
  • The Carlyle Group Inc.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • NOW Courier, Inc.
  • Timberland Transportation Inc.
  • n/a
  • Sky 805 LLC
  • CMA Sky 805 Holdings LLC
  • n/a
  • Magusa Logistics, Corp.
  • Global Critical Logistics LLC
  • n/a
  • Parker and Company, Inc.
  • Scarbrough International Ltd.
  • n/a
  • Freight Brokerage Business of Jillamy, Inc
  • MODE Transportation, LLC
  • n/a
  • Accelerated Global Solutions Inc.
  • Speedx Inc.
  • n/a
  • LD Global Logistics Inc
  • Jayud Global Logistics Limited
  • n/a
  • Rail line of Meridian & Bigbee Railroad, L.L.C.
  • Canadian Pacific Kansas City Limited
  • n/a
  • Shomotion, LLC
  • Dreamliner Luxury Coaches LLC
  • n/a
  • Jamco International, Inc.
  • IMPERATIVE LOGISTICS GROUP, LLC
  • n/a
  • Certain Railcar Maintenance Assets of Northern Plains Rail Services
  • Cypress Rail Solutions
  • n/a

 

Source S&P Capital IQ as of 1/17/2025 and PCE Proprietary Data

PCE Transactions

Contacts

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Eric Zaleski

Chicago Office

847-239-2466 |

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Kyle Wishing

Atlanta Office

404-994-4186 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. “Spirit Airlines Is Filing for Bankruptcy. Here’s Why.” WSJ, November 18, 2024.
  2. 2. Kingston J., “As dealmakers gather in New York, logistics merger activity holding up.” Freight Waves, December 4, 2024.
  3. 3. Stein J., “Trump aides ready ‘universal’ tariff plans — with one key change.” WSJ, January 6, 2025.
  4. 4. Berger P., “Help Wanted: U.S. Factories Seek Workers for the Nearshoring Boom.” WSJ, December 27, 2024.
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