Brambles Sell Plastics Unit for $2.5 Billion; Shares Surge
Brambles Sell Plastics Unit For $2.5 Billion, Plans Buyback
(Bloomberg) -- Brambles Ltd. has agreed to sell its IFCO reusable plastic containers unit to buyout firm Triton and a unit of the Abu Dhabi Investment Authority for an enterprise value of $2.5 billion, and will return most of the proceeds to shareholders.
The Sydney-based company, best known as a provider of wooden pallets for companies to ship goods, will buy back $1.65 billion of shares, and return a further $300 million to investors in cash, equal to about 29 Australian cents a share, it said in a statement Monday.
Brambles shares rose the most in three years in early Sydney trading, climbing as much as 8.1 percent. It was trading at A$12.30 at 10:03 a.m. local time, taking its gains this year to 21 percent.
“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,” Chief Executive Officer Graham Chipchase said in the statement.
The deal is expected to close in the second quarter of 2019.
To contact the reporter on this story: Peter Vercoe in Sydney at pvercoe@bloomberg.net
To contact the editors responsible for this story: Rebecca Jones at revans6@bloomberg.net;Katrina Nicholas at knicholas2@bloomberg.net
©2019 Bloomberg L.P.