PALLET, crate and container company Brambles announced today (25 February) that it would sell its IFCO reusable plastic containers business to Triton and Luxinva, a wholly owned subsidiary of the Abu Dhabi Investment Authority.

In an ASX announcement, Brambles said the sale was worth US$2.51bn, and the sale was subject to the customary regulatory approvals and is expected to be completed during the second quarter of the 2019 calendar year.

Brambles said it intended to return up to US$1.95bn of the transaction proceeds to shareholders through a combination of pro-rata return of cash (expected to be about $0.29 per share) and an on-market share buy-back.

Brambles chairman Stephen Johns said the company had announced it intended to separate IFCO through either a demerger or a sale by way of a dual-track process.

“As well as progressing the demerger option, a robust and competitive sale process generated strong interest,” he said.

“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.”

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Brambles CEO Graham Chipchase said the separation would allow Brambles to focus on strategic priorities and to pursue continued revenue growth within core markets while also reviewing additional opportunities in emerging markets.

“Our ambition remains to lead the platform pooling industry in customer service, innovation and sustainability,” he said.

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