In a deal worth $213 million, Ceva Logistics is in the process of selling its Asia Pacific Pallecon business and European container logistics operation to Australian company Brambles, which provides packaging and logistics solutions.
Pallecon operates here in Auckland and Christchurch, offering a full range of intermediate bulk carriers (IBCs) for the packaging of liquid, dry products and general security use.
Within Ceva, each business has operated as a self-contained business segment, with dedicated management teams and separate systems, processes and customers.
Completion of the sale is expected to take place at the end of the first quarter 2013. No changes are expected in the running of Pallecon and further details of the acquisition will become available closer to the time of sale.
Speaking on the reasons for the sale, Marvin O. Schlanger, CEO of Ceva, says: “While these are both businesses with exciting prospects, they lie outside Ceva’s core business of non-asset-based integrated supply chain solutions, primarily freight management and contract logistics.
“We feel that the businesses will be able to realise its full potential under the ownership of Brambles, and thank the management and staff for their contribution to Ceva.”
Brambles CEO, Tom Gorman, says: “Pallecon has outstanding customer relationships, good growth prospects and a record of generating strong financial returns. It will complement our plans to grow our IBC operations worldwide.”
Brambles is a pooling solutions company specialising in the provision of reusable pallets, crates and containers and associated logistics services.
Headquartered in Sydney, Australia, Brambles operates across multiple industry supply chains in more than 50 countries.
