40 million euros to boost consolidation in the logistics sector. That amount comes from the new investment fund Logistics Platform Partners, an initiative of the owners of logistics service provider Nedcargo. LPP aims to acquire at least three smaller and medium-sized companies by the end of 2022.
LPP's initial capital has been contributed by the owners of Nedcargo: Diederik Jan Antvelink, Roderick de la Houssaye and Van Uden Holding. The sale of the inland branch gave Nedcargo the financial means to invest. LPP is managed by De la Houssaye, Antvelink and his brother Gert-Jan Antvelink. The latter has long been involved with Nedcargo as a strategic advisor and also participates in LPP.
'Consolidation inevitable due to major challenges'
Consolidation is inevitable in the logistics sector and LPP is determined to play a role in it, says Diederik Jan Antvelink. "Many companies face big challenges. They have to invest in digitalisation to meet their customers' needs and they have to invest in new, clean technology to meet climate requirements. Moreover, they need to protect themselves against cybercriminals."
Small and medium-sized companies in particular lack the resources to make these investments, even if they are otherwise performing well, Antvelink said: "On top of that, many entrepreneurs have to make big decisions about succession in their business. Will they continue for another 10 years, with all the uncertainties coming their way? Or is this perhaps a good time to sell the company or join a larger industry peer?"
Platform companies
LPP plans to take over companies and allow them to continue under their own banner. The fund is looking for "well-run and well-managed companies" that can function as so-called platform companies. "These will continue under their own name and specialise, digitalise and become more sustainable," Antvelink said. Meanwhile, the companies will benefit from the economies of scale offered by LPP, for example in the procurement of equipment, fuel and automation.
The next step is to hang smaller companies under the platform companies. These can eventually merge into the platform companies. Furthermore, LPP wants to invest in innovative startups and scale-ups that contribute to the modernisation of logistics.
Investment budget
The investors say they will be able to spend a considerable amount of their own money in the coming years. LPP also has agreements with several Dutch banks so that the total investment budget can increase substantially. Antvelink expects LPP to acquire at least three companies by the end of 2022. "We are aiming at healthy family businesses with a nice clientele that have succession problems or insufficient funds to make the large investments needed in the coming years. We want to keep these companies for the Netherlands or Belgium."
