Trends in 2025 UK Freight and Logistics M&A

As 2025 comes to a close, it is an opportune moment to review the year’s developments in the UK freight and logistics mergers and acquisitions (M&A) landscape and identify the key trends emerging. The sector has experienced transformation in 2025, driven by shifting market demands, technological innovation, and evolving regulatory frameworks. M&A activity has become a central strategy for companies seeking to strengthen their market position, broaden service offerings, and enhance operational efficiency. This article examines some of the trends that have shaped M&A activity in the UK freight and logistics industry throughout the year.

Technology Integration as a Growth Strategy

Technology continues to be a key driver in M&A decisions within logistics, with firms targeting companies that offer advanced digital platforms, automation capabilities, and data‑analytics expertise. Such acquisitions enhance supply‑chain visibility, reduce costs, and improve customer service, while also supporting sustainability goals. 

For example, in February 2025, FedEx acquired RouteSmart Technologies, a long-established provider of route‑optimization software for parcel, postal, waste‑collection, and field services, enabling faster deliveries and lower fuel consumption. Similarly, in May 2025, Blue Yonder purchased Pledge Earth Technologies, a UK-based company offering verified carbon‑emissions measurement and reporting, integrating sustainability tracking directly into its supply‑chain platform. These deals illustrate how logistics companies are leveraging technology not only to optimize operations but also to embed sustainability and data-driven decision-making across their networks supply-chain operations. This acquisition lets Blue Yonder embed carbon emissions tracking into its logistics and supply-chain software suite — a clear example of integrating ESG / sustainability tech into logistics platforms.

Increased Focus on Sustainability

Sustainability has evolved from a niche concern to a central driver of business strategy in logistics. Many UK companies are now acquiring, merging, or partnering with firms that provide green technologies or sustainable transport solutions, including electric vehicle (EV) fleet operators and carbon‑footprint tracking software providers. This trend reflects growing pressure from customers and regulators to reduce emissions, and companies that integrate sustainable practices through M&A can enhance their brand reputation while meeting stricter environmental standards. 

A notable example is the fully‑electric delivery and haulage firm HIVED, which operates an EV‑only parcel and freight network and is expanding rapidly across the UK in 2025, demonstrating how EV‑driven transport is becoming an integral part of modern logistics operations

Consolidation to Address Capacity Challenges

With capacity under pressure from driver shortages and infrastructure bottlenecks, many UK freight operators are turning to consolidation — merging or acquiring smaller firms — to pool resources, expand geographic coverage and smooth out volatility in demand. In 2025, several mid‑sized logistics providers joined forces to form stronger regional players better positioned to handle larger volumes. For example, Raptor Logistics acquired neighbouring firm D&M Logistic Solutions, combining their operations to strengthen their footprint around Suffolk and improve their reach across the UK freight network. Meanwhile, international freight and shipping group CMA CGM expanded its UK footprint by acquiring in September 2025 Freightliner UK — a rail and intermodal logistics operator. This acquisition enhances CMA CGM's ability to move goods via rail and road rail‑linked logistics, broadening its capacity and flexibility in the UK freight market.

These kinds of moves — merging regional players, integrating rail/road capabilities, and pooling freight‑forwarding resources — help firms manage capacity constraints more effectively, boost asset‑utilisation, and increase resilience against demand fluctuations.

Private Equity Interest Remains Strong

Private equity firms continue to play a major role in UK freight and logistics M&A. They are drawn by the sector’s stable cash flows and growth potential, particularly driven by e‑commerce and expanding delivery demand. PE‑backed deals often aim to scale operations, professionalise management, and upgrade infrastructure or technology. For instance, in 2025 the private equity firm Palatine took a majority stake in UK‑based fulfilment and logistics provider fulfilmentcrowd — a cloud‑based fulfilment business — enabling it to target further acquisitions and expand its warehousing and dispatch operations.

Meanwhile, the global investment company Blackstone acquired a large portfolio of 18 last‑mile logistics assets in the UK from PGIM, folding them into its platform Indurent. The move illustrates how PE capital is being used to consolidate and professionalise logistics infrastructure to meet rising demand.

These transactions highlight that private equity continues to supply readily available capital for well‑positioned logistics businesses — backing those that are ready to scale, improve operational efficiency, and meet growing demand in a competitive e‑commerce environment.

Cross-Sector Partnerships Gain Momentum

Logistics companies are increasingly partnering with firms outside the traditional freight sector. These cross-sector deals include collaborations with technology start-ups, retail chains, and energy providers. The goal is to create integrated solutions that improve end-to-end supply chain performance.

One notable case in 2025 involved InPost, a parcel‑locker and out‑of‑home delivery network operator, completed the takeover of Yodel (one of the UK’s large parcel‑delivery businesses) in April 2025. This deal combines out‑of‑home parcel lockers with last‑mile home delivery under one group, giving retailers and customers a more seamless inventory‑to‑delivery solution. Another example in 2025 the UK freight forwarder FSEW partnered with EV‑charging infrastructure specialist Zenobē to establish a new “Low Carbon Freight Hub” in Cardiff, installing DC chargers and making the site one of the first renewable‑energy powered freight depots in Wales.

Regional Expansion Drives Deal Activity

Expanding geographic coverage continues to be a major driver of mergers and acquisitions in the UK logistics sector. Companies are acquiring regional operators to access new markets, broaden their customer base, and strengthen service capabilities. This trend not only fuels growth in underserved areas but also improves operational flexibility and delivery efficiency.

In 2025, several deals highlighted this focus on regional growth. For example, Maritime Transport acquired Lanes Group’s northern England operations, enhancing its presence across Yorkshire and Lancashire and enabling faster last‑mile deliveries for local customers. Similarly, Wincanton expanded into Scotland by purchasing H&H Distribution, a regional freight and warehousing specialist, strengthening its Scottish network and improving service coverage for retailers and manufacturers in the region. 

These transactions demonstrate how UK logistics firms are strategically using acquisitions to build local expertise, reduce delivery times, and meet growing demand in fast-developing regions outside London and the South East.

Conclusion

 The 2025 UK freight and logistics M&A landscape highlights a sector rapidly adapting to evolving challenges and opportunities. Deal strategies are increasingly influenced by sustainability initiatives, technological integration, and regulatory considerations. At the same time, consolidation and private equity investment continue to drive growth, while cross‑sector partnerships and regional expansion create additional avenues for value creation and strategic advantage.