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.