Lehnkering AG (Acquired by Imperial Logistics International GmbH 2011)

2011

October - South African logistics service provider Imperial Logistics had bought German industrial logistics business Lehnkering from its private equity owners in a deal, said by Imperial, to be worth €173m.

Imperial Holdings was a diversified conglomerate owning businesses across South Africa; including car rental, retailing and tourism, as well as logistics. Its logistics business had, up until recently, been largely focused on South Africa; serving a broad base of sectors, although with some emphasis on industrial markets such as chemicals and heavy engineering. In 2011 the company had revenue of R64bn (€5.9bn), with Imperial Logistics accounting for 31% of this.

Imperial Logistics had in the past had a relationship with the German market through a joint venture with a German freight forwarder and a continuing presence in short-sea shipping and barging. However over the past year, Imperial Logistics management had indicated that it wished to accelerate its growth into Europe.

In September it bought a small Rhine barging company and now with the purchase of Lehnkering it had a strong presence in the chemical and steel logistics sectors. The German logistics company was owned by the private equity company Triton, with Lehnkering's management owning significant equity as well. It had a strong presence in northern and western Germany, particularly around the Rhine, but also in support of chemical production in Antwerp and Rotterdam. Lehnkering had annual revenue of over €500m, but its owners had not published any profit numbers in recent years.

The sale of Lehnkering had been rumoured since the summer and it could hardly be a surprise as most private equity companies would look to realise their investments after five years, whilst Triton had owned Lehnkering since 2004.

What was perhaps more interesting was that a company such as Imperial was investing so heavily in European industrial logistics. Imperial's management believed that Europe in general, and Germany in particular, would continue to provide the largest proportion of world trade and Imperial wished to position itself on the supply chains of the continents big exporters.

It was also looking to participate in the consolidation of the global logistics sector. Speaking to the local South African press the CEO of Imperial Holdings, commented that "growth and diversification of our international logistics business is a key strategic intent of Imperial. We have been invested in Germany for many years and it is our second home market. …Germany is designed to be the hub of our international activities outside Africa. Lehnkering provides us with the ideal opportunity to deliver on our strategy of growing our German operations and to open further opportunities into Europe and global emerging markets which are served by German exports."

Lehnkering AG is a logistics service provider, specialising in the transportation of chemicals, petrochemical and steel, in the Central and Northwestern Europe region. 

Its key business areas are Shipping Logistics, Road Logistics, Chemical Manufacturing and Distribution services.