Subscribe to our free, weekly email newsletter!


CEVA to sell intermediate bulk container business to Brambles Limited

By Staff
December 18, 2012

Global third-party logistics (3PL) services provider CEVA Logistics said this week it has signed a definitive agreement with Australia-based Brambles Limited, a provider of pallet, crate and container pooling solutions through the CHEP and IFCO brands, to sell its Intermediate Bulk Container (IBC) groups, European Container Logistics and its Asia Pacific Pallecon business.

CEVA said the transactions are subject to typical closing conditions. The company added that CEVA will invest capital from these transactions, which are expected to be completed in the first quarter of 2013, for general corporate purposes.

Brambles said that the purchase price of Pallecon was$177 million. And they added that Pallecon operates mainly in Western Europe, Australia and New Zealand, providing IBCs primarily for the transportation of liquids in the food, cosmetic and chemical industries. It has been operating for more than 30 years and operates a pool of approximately 180,000 IBCs worldwide.

“Pallecon has outstanding customer relationships, good growth prospects and a
record of generating strong financial returns,” said Pallecon CEO Tom Gorman. “It will complement our plans to grow our IBC operations worldwide, in line with our strategy of expanding our pooling solutions operations into a broader range of service lines and customer segments.”

CEVA said both of these groups offer a full range of IBCs for the packaging of liquid, dry products and general security use known for innovation and design. They also each operate as a self-contained business segment, with dedicated management teams and separate systems, processes, and customers.

“While these are both businesses with exciting prospects, they lie outside CEVA’s core business of non-asset based integrated supply chain solutions, primarily Freight Management and Contract Logistics,” Marvin O. Schlanger, CEO of CEVA, said in a statement.  “We feel that the businesses will be able to realize their full potential under the ownership of Brambles, and thank the management and staff for their contribution to CEVA.”

In late November, CEVA reported third quarter earnings of $1.8 billion Euro or about $2.4 billion U.S., which represented a 5.1 percent annual gain.

CEVA officials said the company’s Oceanfreight and Automotive groups showed strong growth in the third quarter, and the company also reported that it secured an estimated $532 billion Euro ($686 million U.S.) of new business. Its Freight Management (FM) group saw revenues move up 6.4 percent, and the Contract Logistics Group improved by 3.3 percent.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

Article Topics

News · Global Logistics · CEVA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA