Australian provider of pallet, crate and container pooling solutions Brambles has signed a sale and purchase agreement to acquire Pallecon, a division of CEVA Logistics, in a deal worth €135m ($177m).
Brambles CEO Tom Gorman said Pallecon will complement the company’s plans to grow its IBC operations worldwide, in parallel with its strategy of expanding its pooling solutions operations into a wide range of service lines as well as customer segments.
According to Brambles, the transaction price represents a multiple of 7.4 times Pallecon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) and 11.8 times its EBIT for the full year ended 30 September 2012.
Pallecon operates mainly in Western Europe, Australia and New Zealand and provides IBCs for the transportation of liquids in the food, cosmetic and chemical industries, mainly.
The acquisition, which will be funded by Brambles from existing bank borrowing facilities, is subject to customary conditions precedent.