Australia-headquartered Brambles(ASX: BXB) has announced it plans to sell its IFCO reusable plastic containers (RPC) business to a subsidiary of the Abu Dhabi Investment Authority for US$2.51 billion.
The sale to Triton and Luxinva is subject to regulatory approval and expected to be completed in the second quarter of this year.
“In August, we announced that we would seek to separate IFCO through either a demerger or a sale by way of a dual track process,” said Brambles chairman Stephen Johns.
“As well as progressing the demerger option, a robust a competitive sale process generated strong interest.”
CEO Graham Chipchase said the sale would allow Brambles to focus on its new 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.”
In the 2018 financial year, IFCO generated revenues of US$1.1 billion and an underlying profit of US$133 million.