CHEP announces intention to acquire IFCO
November 14, 2010 - MMH Editorial
Brambles Limited, the parent company of CHEP, announced the planned acquisition of IFCO SYSTEMS, NV, a leading provider of reusable plastic containers (RPCs) in 23 countries, and pallet management services in the USA. The transaction will enhance Brambles’ position as a global leader in pooling solutions, creating an entity with sales revenue of approximately US$5 billion.
The scale of the transaction requires review from the applicable regulatory authorities, as is common with transactions of this size and nature. During this period of review, expected to be completed within nine months, both companies will continue to operate as separate entities.
CHEP Americas Group President Jim Ritchie said, “This transaction represents a tremendous opportunity for our customers that supports our growth plans in RPCs and pallets. Our customers can expect no service interruptions during the regulatory review period, and significant service enhancements in the medium to long-term, including product and service innovation and greater value delivery.”
Brambles CEO Tom Gorman said, “The purchase of IFCO represents a unique opportunity for Brambles to enhance its position as the world’s leading pooling solutions provider and acquire operations with a strong growth profile. IFCO is a natural fit with Brambles’ existing RPC and pallet businesses and will allow us to continue to deliver on our strategy of diversifying our revenue base by product platform, geography and customer type.”
Once approved, the transaction would create an entity with sales revenue of approximately US$5 billion, of which more than US$4 billion would come from pooling and pallet services. The Brambles group would have more than 16,000 employees, working in 49 countries across six continents under the CHEP, IFCO, Recall, LeanLogistics and Unitpool brands.
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