Logistics Platform Partners (LPP) is a new investment fund with the goal of boosting consolidation in the logistics sector and making necessary progress on sustainability and digitisation.
“This consolidation is essential to enable necessary investments in sustainability and digitisation,” the company stated. “LPP wants to invest in the future of logistics companies through a majority stake. The initiators have raised €40m for this.”
LPP's seed capital reportedly came from the owners of logistics service provider Nedcargo, Diederik Jan Antvelink, Roderick de la Houssaye and Van Uden Holding.
“LPP is managed by De la Houssaye, Antvelink and his brother Gert-Jan Antvelink,” the company stated. “The latter has been involved with Nedcargo for some time as a strategic advisor and will also participate in LPP. The fund managers have their roots in the logistics sector and they have a great deal of experience with digitisation and sustainability.”
Diederik Jan Antvelink said that consolidation in the logistics sector was inevitable and that LPP was determined to play a role.
“Many companies face major challenges,” he said. “They have to invest in digitisation to meet the needs of their customers and they have to invest in new, clean technology to meet the climate requirements. In addition, they must protect themselves against cyber criminals.”
He pointed out that small and medium-sized companies often struggled to make such investments, while many entrepreneurs faced a medium-term dilemma over whether to sell their companies or join a larger partner.
Antvelink said LPP wanted to take over companies and allow them to continue under their own flag. “We are looking for well-run companies that can function as 'platform companies’,” he explained. “These will continue under their own name and specialise, digitise and make them more sustainable. As part of the group, they benefit from economies of scale, for example in the purchase of equipment, fuel and automation.”
Eventually, the smaller companies could then be absorbed into these platform companies, LPP revealed. “LPP also wants to invest in innovative start-ups and scale-ups that contribute to the modernisation of logistics,” the company added.
Antvelink said he expected LPP to acquire at least three companies by the end of 2022. “We aim for healthy family businesses with a good clientele that have succession problems or insufficient resources to make the major investments that will be needed in the coming years,” he said. “We want to keep these companies for the Netherlands or Belgium.”
In the coming period, LPP said it would be active in promoting its proposition to entrepreneurs in the logistics sector. “I like to get in touch with entrepreneurs who are examining the future options for their company and who want to look with us at what role LPP could play,” said Antvelink. “I know from experience that it is a big step and that it takes time. I like to make time for that.”