During our ownership, LPR was the second-largest provider of pallet rental services in Europe, operating across five core markets: France, Spain, Portugal, Benelux and the UK. Serving exclusively the FMCG sector, the company supported blue-chip customers in food, beverage and hygiene with the rental, tracking and management of pallets critical to the transport and storage of goods.
Initial investment
2004
Sector
Business Services
Following several years of rapid organic growth, we identified LPR as a market leader with a strong, defensible position, well invested infrastructure and an impressive list of blue-chip FMCG customers. Despite this, the business had underperformed financially due to a lack of capital expenditure discipline.
As a non-core subsidiary within a larger corporate group, LPR’s true value was misunderstood. We believed there was a compelling opportunity to execute a corporate carve-out, sharpen operational discipline and unlock the underlying strength of the business model.
Following our acquisition in 2004, we moved quickly to transform LPR’s operations. We upgraded core processes governing pallet flows with tighter tracking controls, and introduced more capital discipline, which drove improved returns on capital and cash generation.
We strengthened management focus on profitability, exiting unprofitable accounts and embedding a structured key account management approach.
LPR was transformed from an underperforming, non-core asset into a highly profitable and cash generative business. The company exited subscale markets, reduced operational complexity and enhanced pricing, while strengthening customer quality and relationships.
In 2006, following a competitive sale process, we sold LPR to Atria Capital.