Abu Dhabi – Mubasher: Australian company Brambles on Monday announced that it has entered into a binding agreement to sell its IFCO reusable plastic containers (RPC) business to Triton and Luxinva, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), in a deal worth $2.51 billion.
"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.
Subject to customary regulatory approvals, the deal is expected to be completed by the second quarter of 2019, Brambles said in a statement.
The Sydney-based company, best known as a provider of wooden pallets for companies to ship goods, will buy back $1.65 billion of its shares, and return a further $300 million to investors in cash, or at 29 Australian cents per share.
“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,” Graham Chipchase, Brambles' CEO, commented.
Brambles expects to receive approximately $2.36 billion of net cash proceeds from the transaction, after taxes, transaction costs, and balance sheet items.
