Mergers and Acquisitions in the Art Logistics Market: Trend Overview

Mergers and Acquisitions in the Art Logistics Market: Trend Overview

Mergers and acquisitions (M&A) is a popular business strategy whereby bigger companies can grow, increase their market share, and potentially reduce competition by merging with or acquiring smaller companies. Only in 2021 did the global M&A volumes reach $5.9 trillion in value, which is 64% higher than in 2020. The trend continues to evolve, and the art logistics market is one of the areas where its influence becomes stronger and stronger. Let’s look at the most popular M&A deals in recent years and their impact on the industry.

Mergers and Acquisitions in the Art Logistics Market: Trend Overview

Cadogan Tate Acquires Wetzel & Sons

In November 2020, Cadogan Tate completed the acquisition of Wetzel & Sons Inc. By adding the Los Angeles-based fine art storage and logistics firm to its franchise, the company enhanced its presence in the US market and expanded its capabilities on the West Coast.

Crozier Acquires Artex Fine Arts and Martinspeed

The New York-based Crozier Fine Arts acquired Artex Fine Arts in 2018 and Martinspeed in 2021. Both companies, well-known in the art logistics market, extended the influence of Crozier in the US and UK. With the purchase of Artex Fine Arts, the logistics giant obtained 160,000 square feet of storage space in Washington, DC., New York City, Florida, and Los Angeles.

Hizkia Van Kralingen Group Acquires Crown Fine Art

In 2021, HIZKIA, a Dutch art logistics company, became the owner of Crown Fine Art’s storage business and operation activities in Belgium, the Netherlands, and France. The experience and a new pool of logistics experts expanded the geography and range of specialized services that Hizkia Van Kralingen Group provides in Europe.

Art Logistics Dilemma: Small vs. Large Companies

The trend becomes more and more prevalent, which will have both positive and negative effects on the companies of the art logistics market. While synergy can increase the investments of the bigger companies and save unprofitable firms from going out of business, there are serious risks that come with integration. As practice shows, it leads to less choice for clients, higher prices due to the increase of monopoly power, and possible inefficiency because of M&A problems.

The market share is still in the hands of smaller companies that stand out as a highly efficient and cost-effective option. If you need a team that is small enough to care and big enough to deliver, you have come to the right place. Fine Art Shippers values its long-established traditions and is happy to provide its clients with customized fine art services.