Shipping & Ports

M&A activity across the Shipping and Ports industry is typically influenced by a number of factors including:

• Environmental considerations – companies are working towards technical innovation which will make their vessels meet the required emission standards.
• Taking advantage of shifting business pattern – companies are executing strategic deals to adapt to the changing sources and volumes of fuels.

To this end, Q1 2023 saw four deals in the Shipping & Ports sector. In absolute terms, this was a decline on Q4 2022, but is broadly in line with typical quarterly activity. Notable deals executed during Q1 2023 include:

• KPS Capital Partners' acquisition of Princess Yatchs through an LBO.
• Associated British Ports' acquisition of Solent Gateway through an LBO. 

Restructuring activity in this sector remains moderate. Increases in the price of crude oil following Russia's invasion of Ukraine has resulted in significant inflationary pressures on transport costs, stemming from rising motor fuel prices. The sector is heavily influenced by the amounts of petroleum products imported, so with domestic demand for petroleum expected to remain volatile over the forthcoming year, restructuring activity will likely remain unpredictable.