Brambles to Create Energy Container JV with Hoover Container Solutions
05 August 2016 - 10:10AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Australia's Brambles Ltd. (BXB.AU) said it will merge
its energy container businesses with U.S.-based Hoover Container
Solutions in a venture that will be the second-biggest provider of
container logistics to the oil-and-gas and chemicals
industries.
Brambles said the joint venture Hoover-Ferguson Group, or HFG,
will be a combination of Hoover and its own Ferguson Group and CHEP
Catalyst and Chemical Containers units. It will be owned 50% by
Brambles and 50% by Hoover investors, including First Reserve
Corp.
"Our interest in HFG will enhance our position in the
oil-and-gas and chemicals container logistics sector without the
need for additional capital deployment, and creates a strong
capital structure for the venture while enabling us to maintain
strategic optionality over our future investment," Brambles Chief
Executive Tom Gorman said.
Brambles, which said it will receive roughly US$75 million from
First Reserve, said it expects the deal to be completed in October.
The new company, it said, will be led by Hoover Chief Executive
Donald Young, while Brambles will nominate the chief financial
officer.
Separately, Brambles said it expects to write down its
oil-and-gas assets by US$38 million, citing weak energy
markets.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
August 04, 2016 19:55 ET (23:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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