Monday, November 15, 2010

CHEP Owners March On To Dominate The World Of Freight Pallets And Crate Rental

Parent Company Buys IFCO Systems
Shipping News Feature

US - Brambles Limited, the parent company of CHEP, announced the planned acquisition of IFCO Systems, who supply and manage reusable plastic crates and containers (RPC’s) and cargo pallets in twenty three countries. The basis of the IFCO business is the management of a rental pool of in excess of 102 million RPC’s used throughout the world for the shipment of fresh fruit and vegetable products. CHEP of course are known internationally for their global pool of over 300 million pallets and Brambles feel the two businesses will prove mutually advantageous.

The scale of the transaction requires review from the applicable regulatory authorities, as is common with transactions of this size and nature. During this period of review, expected to be completed within nine months, both companies will continue to operate as separate entities. CHEP Americas Group President Jim Ritchie said:

“This transaction represents a tremendous opportunity for our customers which supports our growth plans in RPC’s and pallets. 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.”

Once approved, the transaction would create an entity with sales revenue of approximately US$5 billion, of which more than US$4 billion 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 (information storage), LeanLogistics (supply chain solutions)and Unitpool (airfreight unit load device rentals)brands.