CHEP Parent Brambles to Buy IFCO

Nov. 17, 2010
Brambles Limited, the parent company of CHEP, announced the planned acquisition of IFCO SYSTEMS, NV, providers of reusable plastic containers (RPCs) in 23 countries, and of pallet management services in the U.S. Once approved by regulatory authorities, the transaction will enhance Brambles’ pooling solutions, creating an entity with sales revenue of approximately $5 billion.

More than $4 billion of that revenue 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.

“This transaction represents a tremendous opportunity for our customers and supports our growth plans in RPCs and pallets,” said CHEP Americas Group President Jim Ritchie. “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 added: “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.”

During the review period, expected to be completed within nine months, both companies will continue to operate as separate entities.