IFCO Acquires Full Control of IFCO Japan
PULLACH, GERMANY - IFCO Systems has announced it will acquire the remaining two-thirds of IFCO Japan it did not already own, in a transaction that places an enterprise value on IFCO Japan of $39.7 million.
“Gaining full ownership of IFCO Japan is a key strategic step for IFCO in the continued expansion of our reusable plastic crate (RPC) business, which serves retailers and fresh food producers in most of the world’s major economies,” said IFCO Systems’ CEO, Wolfgang Orgeldinger. “The transaction offers a strong internal rate of return as it stands, with upside available as we focus on improving sales and marketing disciplines and driving stronger returns, including through potential synergies with IFCO globally."
IFCO Japan is one of two established RPC poolers in Japan. Founded in 1995 and, prior to full acquisition by IFCO parent company Brambles, IFCO Japan was jointly owned by Mitsubishi Plastics, IFCO, and Meiji Rubber & Chemical. The company has service centres in Gifu and Saitama near the cities of Nagoya and Tokyo respectively and employs 30 people.
The business serves a diverse customer base comprising leading Japanese retailers, fresh produce growers, cooperatives and wholesales. According to the company, IFCO Japan generated sales revenue of $24.7 million and EBITDA of $6.7 million in the Japanese financial year 2015. Key management will remain with the business.
Orgeldinger also confirmed that this acquisition was IFCO Systems’ largest investment in Japan to date, and will complement its ongoing assessment of opportunities in the RPCs segment and elsewhere in Asia.