 Since its creation in 1992, LPR has become Europe's No. 2 pallet pooling operator.
Exclusively dedicated to the fast-moving consumer goods sector, LPR handles more than 35 million pallet movements a year and a total pool of over 10 million pallets. With subsidiaries in six countries, LPR offers an end-to-end delivery and collection service throughout Western Europe. It has a network of 60 depots and collects pallets from 20,000 drop-off points across Europe. LPR works with the principal manufacturers of fast-moving consumer goods in Europe including Nestlé, Kimberly-Clark, Coca-Cola, Heineken and Cadbury, and with all major retailers in the mass-distribution sector.
Transaction
LPR was an independent entity that was purchased as a part of Algeco in 2004. Following our acquisition we separated the operations of LPR from Algeco and set up stand-alone financing facilities. We concentrated on controlling costs and optimizing growth and in 2006 the business was sold to AtriA Capital.
Investment Overview
When we bought it, LPR was in a difficult position, although the underlying business with its well-invested infrastructure and list of blue-chip clients had potential to generate positive cash flow and a high return on capital. We immediately began a restructuring programme and cut the number of markets and customers on which the company focussed. The team also sought to address the high, implementing an improved inventory management programme, which significantly improved collection rates of pallets. We helped LPR improve its asset control and implement pricing increases. Later on we led the successful expansion into the UK market.
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