Brambles to sell CHEP Recycled & see US$243.8m impairment

Company News

by Jessica Amir

Brambles (ASX:BXB) has announced it intends to sell its recycled whitewood pallets business in North America, CHEP Recycled.

The logistics supply giant plans to divest CHEP Recycled as it’s not a core part of the business, as it’s failed to deliver financial returns to generate sustainable shareholder value.

As part of the potential sale it’s looking to sell 80 plants and its total pallet management (TPM) sites, while 2,200 employees will transfer to the potential purchaser’s management upon completion.

They also announced plans to sell the division, so it can focus on its core-logistics value proposition, given its position as world leader in the industry.

Brambles will recognise a non-cash impairment of US$243.8 million in FY17 while the transaction has been booked as ‘assets held for sale’ in its FY17 results.

Shares in Brambles (ASX:BXB) are trading 2.45 per cent lower to $9.57.

 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She was a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked as a financial planner and real estate agent.