Brambles announced the sale of its Cleanaway Australia and New Zealand and Industrial Services Australia to an affiliate of Kohlberg Kravis Roberts & Co., the US private equity firm, for $1.35 billion.
David Turner, Brambles’ CEO, said the businesses had attracted very strong interest from trade and private equity buyers since the announcement late last year that they would be sold.
The Chairman of Brambles, Don Argus, said: "The sale of these businesses represents a significant milestone in the execution of our strategy to focus on CHEP and Recall, our premium growth businesses.
"As we announced in November last year, we believe this strategy will deliver significant benefits for Brambles shareholders."
The sale is expected to be completed in early July 2006.
Cleanaway is the largest participant in the Australian waste management industry, providing services to over 65,000 commercial and industrial customers and 87 municipal clients. It employs almost 2,000 people.
Industrial Services Australia is the leading provider of on-site and off-site support services, primarily to large companies operating in the coal, metals, minerals and steel industries. It employs more than 1,200 people.