Brambles has entered into an agreement to sell the CHEP Recycled, its non-core North American recycled whitewood pallet business, to Grey Mountain Partners for an enterprise value of $115 million. The cash proceeds will be subject to final adjustments on closing for balance sheet items.

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Brambles to sell its recycled whitewood pallets business in North America

Brambles has entered into an agreement to sell the CHEP Recycled, its non-core North American recycled whitewood pallet business, to Grey Mountain Partners for an enterprise value of $115 million. The cash proceeds will be subject to final adjustments on closing for balance sheet items, the company says in the press release received by Lesprom Network.

CHEP Recycled currently manages 161 plants and total pallet management (TPM) sites, of which 73 sites service the CHEP Recycled business. Those 73 sites, together with approximately 2,400 employees, are included in the sale and will transfer to Grey Mountain Partners on completion.

The balance, 88 plants and TPM sites that service the CHEP USA pooled pallets business, will be retained by Brambles together with approximately 1,600 employees. These 88 service centres 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.

Brambles expects that the net proceeds of the sale of CHEP Recycled will be in line with the carrying value of that business.