Australia-based Brambles announced mid-January 2018 that it had entered into an agreement to sell a portion of its CHEP Recycled pallet recycling business unit to Grey Mountain Partners for $115 million, subject to due diligence-related final adjustments.
CHEP Recycled says it is the largest whitewood pallet recycler in North America, with a footprint of 73 locations and approximately 2,400 employees.
Kyle Otting, CEO of CHEP Recycled, says, “On behalf of our 2,400 employees in North America, I would like to thank the entire Brambles organization, whose support has led to industry-leading safety programs and enhanced the overall infrastructure of the company. The partnership with Grey Mountain is an exciting opportunity for the company to get back to its roots of offering simple, cost-effective pallet management solutions throughout the supply chain.”
Otting continues, “Grey Mountain’s commitment to provide the resources needed to enter new markets and expand our service offering will strengthen our ability to serve our customers and offer end-to-end pallet management solutions coast to coast.”
Bill Ross, a Grey Mountain affiliate manager, adds, “We are excited to announce the acquisition of CHEP Recycled. We believe there is a clear opportunity for the company to better serve its customers as a standalone business, and we will focus on achieving operational excellence across all 73 facilities. By partnering with the management team and supporting the business with growth capital and additional resources, we hope to further grow CHEP Recycled, which is already the market leader.”
Norm Plotkin will assume the role of chairman of CHEP Recycled, a position he has previously held at four other Grey Mountain affiliate companies.