SYDNEY, AUSTRALIA - Brambles announced yesterday that it plans to sell its IFCO reusable plastic container (RPC) business to buyout firm Triton and Luxinva—a unit of the Abu Dhabi Investment Authority—for an enterprise value of $2.5 billion.
“The sale will allow Brambles to focus on our strategic priorities and to pursue continued revenue growth within our core markets, while also reviewing additional opportunities in emerging markets, through product and service innovation and use of technology through the supply chain. Our ambition remains to lead the platform pooling industry in customer service, innovation, and sustainability,” stated Brambles’ CEO Graham Chipchase, in a press release.
The transaction is subject to customary regulatory approvals and is expected to be completed during the second quarter of 2019.
"In August 2018, we announced that we would seek to separate IFCO through either a demerger or a sale by way of a dual-track process,” Brambles Chairman Stephen Johns said. “As well as progressing the demerger option, a robust and competitive sale process generated strong interest. We are pleased today to announce the sale of IFCO, which we believe delivers greater value for shareholders, including a significant return of cash proceeds to shareholders. The IFCO team has been an important and valued part of the Brambles business, and on behalf of the Board I’d like to thank them for their contribution over the past eight years. The interest shown in IFCO during the separation process is testimony to how highly appreciated the IFCO business is, and we wish Wolfgang Orgeldinger and his team every success in the future.”
The press release noted that IFCO generated revenues of $1.1 billion, EBITDA of $248 million, and underlying profit of $133 million.
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