Brambles Ltd
(ASX:BXB) is gearing up to buy plastic container provider IFCO Systems NV for $US1.3 billion to diversify sales and boost its customer base in both Europe and the Americas.
The logistics company and pallets supplier will purchase 95.9 per cent of IFCO, funded equally through equity and debt.
While the transaction is still subject to regulatory approvals, Brambles says IFCO will be five per cent earnings-accretive for the year ended on 30 June 2011.
CEO Tom Gorman says the purchase of IFCO represents a unique opportunity for Brambles to enhance its position as a leading pooling solutions provider and acquire operations with a strong growth profile.
Brambles has advised it is on target to deliver operating profit before interest costs and tax of between $US740 million to $US780 million.
In the year to 30 June 2010 Brambles recorded a $526.57 million profit.
