Triton and ADIA carve out IFCO in $2.51bn deal

Luxembourg-based holding company Luxinva was used for the acquisition and is a wholly-owned subsidiary of ADIA.

Brambles expects to receive approximately $2.36bn of net cash proceeds from the transaction, after taxes, transaction costs, and balance-sheet items, subject to customary closing adjustments. The logistics business intends to return up to $1.95bn of proceeds from the transaction to shareholders, through a combination of a pro-rata return of cash of approximately $300m and an on-market share buy-back of up to $1.65bn.

Triton used its Triton Fund V vehicle, closed on €5bn in January, Unquote understands. 

Brambles first announced in August that it was considering spinning off the group. The sale, advised by Goldman Sachs and UBS, saw Brookfield, EQT, PAI and Pamplona also bid for the asset, Unquote sister publication Mergermarket reported in January.

Previous funding
Brambles acquired IFCO RCP from Apax Partners in 2011 for an enterprise value of €923m, including a net debt of €227m.

Company
Founded in 1992 and with headquarters in Pullach, IFCO provides reusable packaging products (RPCs) for fresh foods, serving customers in around 50 countries. IFCO operates a pool of 270 million RPCs globally, which are used for around 1.4 billion shipments of items such as fresh fruits and vegetables, meat, poultry, seafood, eggs and bread from suppliers to grocery retailers every year.

IFCO generated revenues of $1.09bn, posting a $248m EBITDA and underlying profit of $133m in 2018.

The business claims to ensure a better fresh food supply chain by protecting freshness and quality and lowering costs, food waste and environmental impact compared to single-use packaging.

People
Brambles - Stephen Johns (chair); Graham Chipchase (CEO).
Triton Partners - Peder Prahl (director, general partner); Stephan Förschle (investment advisory professional, adviser).

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• Buyouts
• DACH
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• Germany
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