Foresco Group acquired Palletcentrale

Stem op deze deal via de stempagina: https://mena.nl/genomineerden-best-mid-cap-deal-2024/

Name of the deal: Foresco Group acquired Palletcentrale
Date announced: 1-12-2023
Date closed: 1-12-2023
Published value: €50-€100M
Buyer(s): Foresco
Target(s): Palletcentrale
Seller: Palletcentrale

Involved firms and advisors

Involved firms and advisors buy side:
STEK Legal, Deloitte Belgium

Involved firms and advisors target:
IRIS Corporate Finance, Vriman M&A Lawyers, Mazars Tax Advisory

Involved firms and advisors sell side:
IRIS Corporate Finance, Vriman M&A Lawyers, Mazars Tax Advisory

Pitch

Brief description deal / Deal outline
Foresco Group, a Belgian company that produces and supplies wooden pallets and packaging, has acquired Palletcentrale, a Dutch company focused on the sale, repair, and manufacture of pallets. The acquisition of Palletcentrale fits with Foresco’s growth ambitions. ​

About Foresco Group
Foresco Group is a Belgian company specializing in the design, production, sorting, and repair of wooden pallets and packaging solutions. The company operates primarily in Belgium, the Netherlands, and Luxembourg, offering a full-service package to address complex logistical challenges. Foresco emphasizes sustainability, focusing on circular use of products and reducing environmental impact through practices like recycling and the use of solar energy. The company aims for growth while enhancing its sustainability profile.

About Palletcentrale
Palletcentrale is a Dutch company specializing in the production, sale, and rental of pallets. Palletcentrale is the market leader in the Netherlands with six locations. In 2022, the revenue was approximately €80 million, and the company sold over 6 million pallets. They offer a variety of pallets, including wooden and plastic options, along with pallet management services. The company focuses on sustainability by promoting reusable and recyclable materials. Palletcentrale serves diverse industries such as food and beverage, logistics, and retail. With a strong commitment to customer satisfaction, they provide tailored solutions to meet specific client needs, making them a key player in the Netherlands’ logistics and supply chain sectors. Palletcentrale employs approximately 150 people. The company focuses on providing high-quality pallet solutions and services to its clients in the logistics and supply chain industries.

Why should this deal win the Award for Best Deal Mid-Cap 2024?
The acquisition of Palletcentrale by Foresco Group deserves recognition due to its strategic alignment, industry impact, and potential for long-term value creation. This deal is not only a significant move within the European pallet and packaging industry but also a model of how mergers can strengthen market leadership, improve operational efficiencies, and enhance sustainability.

Foresco’s acquisition of Palletcentrale is a perfect example of how strategic acquisitions can bolster market leadership in a competitive industry. Palletcentrale was founded in 1969 by collecting pallets in the Rotterdam harbour, then sorting and returning them to producers and transporters of various goods. With the crucial role of pallets in today’s (transport) economy, the continued growth soon led to an increase in the number of location of the Palletcentrale. With 54 years of experience, the company commands a significant portion of the pallet market, particularly in medium to large business sectors. With six locations throughout the Netherlands and Belgium and its own logistics department with a fleet of 30 trucks, it has cemented its reputation as a one of the market leaders in the Netherlands for pallet purchasing, repair, and production.

Foresco has been part of the Belgian investment vehicle of Jan Ponnet and Cedric de Quinnemar since 2009. With the acquisition, Foresco expands its footprint into the Dutch market complementing its established presence in Belgium. The deal showcases how well-planned acquisitions can unlock synergies, expanding market reach, creating economies of scale, and enhancing competitiveness in the European pallet and packaging industry.

This merger enhances Foresco’s logistical capabilities, enabling them to serve their customers more efficiently and reduce transport times. The combination of the two companies’ assets will lead to increased production capacity, streamlined operations, and strengthened customer service, making Foresco a more competitive force in the European market.

The acquisition also underscores Foresco’s commitment to sustainability, which is increasingly important in today’s business environment. Palletcentrale, known for its focus on pallet recycling, repair, and reuse, brings in decades of expertise in extending the lifecycle of pallets—a crucial component of sustainability in the logistics and packaging industries. Foresco will benefit from Palletcentrale’s market-leading sustainability profile, enabling it to take a significant step toward achieving its environmental goals.

By integrating Palletcentrale’s eco-friendly processes, Foresco enhances its sustainability profile, which not only meets growing customer demands for greener business practices but also positions the company favorably within regulatory frameworks increasingly focused on sustainability.

This acquisition not only strengthens Foresco’s short-term capabilities but also sets it up for long-term growth. The combined strength of Foresco and Palletcentrale brings together a powerhouse of industry knowledge, operational excellence, and market penetration, creating a platform that can drive innovation, achieve greater economies of scale, and continue expanding across Europe.  In conclusion, the acquisition of Palletcentrale by Foresco Group is a strategic and highly impactful deal, positioning the company for future growth and leadership in the European market while emphasizing sustainability and operational efficiency.

Deal rationale
The acquisition marks an important step in Foresco’s corporate strategy. The combined strength of Foresco and Palletcentrale brings together a powerhouse of industry knowledge, operational excellence, and market penetration, creating a platform that can drive innovation, achieve greater economies of scale, and continue expanding across Europe while emphasizing sustainability.

What is the impact of this deal for the company?
The deal marks an end of Palletcentrale’s family business, as the company’s operations will be integrated into Foresco’s business this will most likely result in a different way of working for its personnel. On the other hand, the combination will encourage personal development and will enable its personnel to capture internal growth opportunities and climb the ladder of responsibilities.

Furthermore, the international market presence of the combined companies will lead to strategic opportunities and growth.

What is the impact of this deal for the direct stakeholders?
This merger enhances Foresco’s production and logistical capabilities, enabling them to serve their customers more efficiently and reduce transport times. The combination of the two companies’ assets will lead to increased production capacity, streamlined operations, and strengthened customer service, making Foresco a more competitive force in the European market. Palletcentrale’s production facilities, long-standing relationships and robust logistics network provides better proximity to customers in Flanders and the Netherlands, aligning with its strategy to maintain a localized, customer-first approach.

The sale of Palletcentrale will not affect the employment of the approximately 150 employees. ‘That was an important condition for me. Together, we have made the company large and successful, so you want to leave the people in a good position,’ said Marco Leemberg, director/owner of the Palletcentrale  Group, who will fully withdraw from the company after the acquisition. He took over the company 34 years ago and revitalized it.”

What is the impact of this deal on society?
Palletcentrale, known for its focus on pallet recycling, repair, and reuse, brings in decades of expertise in extending the lifecycle of pallets—a crucial component of sustainability in the logistics and packaging industries. Foresco will benefit from Palletcentrale’s market-leading sustainability profile, enabling it to take a significant step toward achieving its environmental goals.

What was most complex about this deal?
The complexity of this deal was in structuring the deal structure in such a way that the potential synergies and combined market presence would benefit both the sellers and buyer.