Ceva Logistics is to sell it European Container Logistics business and its Asia Pacific Pallecon business to Australian company Brambles for €135m.
Both businesses offer a full range of intermediate bulk containers (IBCs) for the packaging of liquid, dry products and general security use. Within Ceva, each business operates as a self-contained business segment, with dedicated management teams and separate systems, processes and customers.
Ceva CEO Marvin O Schlanger said: “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. We feel that the businesses will be able to realise their full potential under the ownership of Brambles, and thank the management and staff for their contribution to Ceva.”
Brambles provides pallet, crate and container pooling services through the CHEP and IFCO brands.
Brambles said the businesses generated sales revenue of €53 million in the 12 months to 30 September 2012, with compound annual sales growth in excess of seven per cent over the three calendar years to 31 December 2011. Pallecon’s EBITDA and EBIT margins averaged 33 per cent and 18 per cent respectively over the same period.
Brambles CEO Tom Gorman said: “Pallecon has outstanding customer relationships, good growth prospects and a record of generating strong financial returns. 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 will use proceeds of the sale after transaction costs for general corporate purposes. Completion is expected in first quarter 2013.
