Australia-based Brambles has announced it has entered into an agreement to sell a portion of its CHEP Recycled pallet recycling business unit to Colorado-based Grey Mountain Partners for $115 million, subject to due diligence-related final adjustments. The transaction is subject to regulatory approvals and is expected to be complete by late February 2018, according to a Brambles news release.
CHEP Recycled currently has 2,400 employees helping to operate 161 plants and pallet management sites. Seventy-three of the sites and about 800 employees will transfer to Grey Mountain Partners upon completion of the transaction.
The balance, 88 plants and pallet management sites that serve what Brambles calls a CHEP USA pooled pallets business, will be retained by Brambles, along with approximately 1,600 employees.
Those 88 service locations “will continue to form part of the core operations of the CHEP USA pooled pallets business and to be reported within the CHEP Americas segment,” according to Brambles.
Brambles Limited describes itself as a supply-chain logistics company operating primarily through the CHEP and IFCO brands.
Grey Mountain Partners, based in Boulder, Colorado, describes itself as a private equity firm that invests in middle-market companies in a wide range of industries, managing approximately $700 million worth of assets.