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 presents the Market Outlook and company news. She joined FNN in January 2017. She has been in broadcast journalism for over five years. She has worked as a journalist with Sky News Business, ABC 1 and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She is also a qualified financial planner and a Masters of Applied Finance student.