On 11 August 2017, Brambles announced its decision to divest CHEP Recycled, its noncore North American recycled whitewood pallet business. CHEP Recycled provides a network of pallet management services in the USA and Canada suppling and recycling over 90 million, primarily whitewood, pallets annually.
Brambles today announces that it has entered into an agreement to sell the CHEP Recycled business to Grey Mountain Partners for an enterprise value of US$115 million. The cash proceeds 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 balance, 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.
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