CHEP announces intention to acquire IFCO

The leader in wooden pallet pooling intends to acquire a leader in reusable plastic containers and pallet management services.
By Modern Materials Handling Staff
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.


Pallets and containers: A CHEP off the old block
More than a decade after entering the North American market, CHEP continues to be the leader in pallet pooling.

Reusable containers: Putting a cap on your container needs
CAPS does for reusable containers what CHEP does for pallets



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

Mexico's growing importance in the continental supply chain is now being recognized by North American transportation groups

Satish Jindel, president of Pittsburgh-based SJ Consulting, says that one way for LTL carriers to improve both their bottom lines and overall productivity is to get a better grasp on the cost of handling a shipment and the pricing they have for it.

Falling 5.5 cents to $2.668 per gallon, this follows last week’s 5.9 cent decline for the lowest weekly average price going back to the week of October 14, 2009, when it was at $2.60 per gallon.

With the latest round of Trans-Pacific Partnership (TPP) negotiations in Maui, Hawaii ending without a deal, U.S. supply managers may be adjusting to other global sourcing strategies.

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

About the Author

Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 or email [email protected].

Comments

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