Brambles have today announced the sale of its reusable plastic containers business for $3.5 billion.
The reusable crate and container company said the sale to Triton and Luxinva, a subsidiary of the Abu Dhabi Investment Authority, was expected to be completed during the second quarter of 2019.
Brambles’ chairman Stephen Johns said the sale of IFCO would deliver greater value for shareholders, including a significant return of cash proceeds to shareholders.
Brambles intends to return up to $2.7 billion of proceeds from the transaction to shareholders through an on-market share buy-back and a pro-rata return of cash payments to all shareholders to the value of approximately 29 cents per share.
Brambles’ CEO Graham Chipchase said the sale would allow Brambles to focus on its strategic priorities and pursue continued revenue growth within its core markets, while also reviewing additional opportunities in emerging markets.
“Our ambition remains to lead the platform pooling industry in customer service, innovation and sustainability,” Mr Chipcase said.