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Brambles sells CHEP Recycled

Wednesday, 10 Jan 2018 ( #854 )
News Story
CHEP Recycled provides a network of pallet management services
Brambles will divest its CHEP Recycled business, selling the non-core North American recycled whitewood pallet division to Grey Mountain Partners for an enterprise value of USD115 million.

CHEP Recycled provides a network of pallet management services in the USA and Canada, supplying and recycling over 90 million, primarily whitewood, pallets annually.

The cash proceeds of the sale will be subject to final adjustments on closing for balance sheet items.

The transaction is subject to standard regulatory approval and is expected to be completed within 45 days.

CHEP Recycled currently manages 161 plants and total pallet management (TPM) sites, of which 73 sites service the CHEP Recycled business. Those 73 sites, together with approximately 2,400 employees, are included in the sale and will transfer to Grey Mountain Partners on completion.

The remaining 88 plants and TPM sites that service the CHEP USA pooled pallets business will be retained by Brambles, together with approximately 1,600 employees. These 88 service centres will continue to form part of the core operations of the CHEP USA pooled pallets business and to be reported within the CHEP Americas segment, according to a company statement.

The purchaser, Grey Mountain Partners, is a Boulder, Colorado-based private equity firm that "focuses on partnering with management to create lasting value through operational improvements and strategic growth initiatives". Grey Mountain invests in middle-market companies across a wide range of industries and manages approximately USD700 million of assets.
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