Brambles Industries said the deal with waste management group SULO is worth about 387 million. The sale is subject to approval from relevant competition authorities in Europe and should be finalised in the coming months.
” Cleanaway has been well managed and this is reflected in the attractive price that has been agreed.“
– David Turner, Brambles Industries
The sale comes after months of speculation that Australian-listed Brambles would sell part or all of its underperforming Cleanaway operations in Europe.
Although the UK branch of Cleanaway is going through management changes, Brambles chief executive David Turner has poured cold water on suggestions of a sale for Cleanaway UK, declaring to the press: “We have got no plans to sell Cleanaway UK.”
Cleanaway Germany employs over 2,600 people and operates over 50 facilities in Germany, Austria, Hungary, Poland, Switzerland, Sweden, Estonia and Lithuania.
German-based SULO plans to integrate the Cleanaway Germany business with its existing German waste management operations.
Growth
Commenting on the sale, David Turner – Bramble's chief executive officer – said: “Cleanaway has been well managed and this is reflected in the attractive price that has been agreed. We will use the proceeds to invest in the further growth of other businesses while, at the same time, reducing debt.”
Although Brambles denied plans to sell Cleanaway UK, the company did indicate a move away from waste management activities. Today also saw the announced acquisition of Melbourne-based information management business AUSDOC for 112 million, and Mr Turner said further acquisitions are likely to be made by Brambles in this area.
“Records management is the most likely area that we can acquire to consolidate on the business,” he added.
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