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Brambles announced that it had agreed to sell Cleanaway UK to Veolia ES Holdings plc, a subsidiary of Veolia Environnement S.A., a world leader in environmental services.
The total cash consideration for the sale is £595 million (US$1,081 million). In addition, Veolia has assumed responsibility for the defined benefit pension funds of Cleanaway UK, which had an FRS17 deficit of £56 million (US$101 million) as at 30 June 2005.
The Chief Executive Officer of Brambles, David Turner, said: “The sustained improvement in Cleanaway UK’s performance this year has led to the attractive price and clean exit that have been agreed. “Brambles’ divestment programme is now essentially complete and has generated total proceeds of US$3.52 billion, significantly more than our initial estimates.” In addition to Cleanaway UK, the businesses that have been divested are Cleanaway Germany, Cleanaway Australia and New Zealand, Brambles Industrial Services Northern Hemisphere, Industrial Services Australia and the Regional Businesses. Brambles will now concentrate on its premium growth businesses of CHEP and Recall. The divestment proceeds will be used in accordance with Brambles announcement of 29 November 2005. The sale is conditional upon approval from the relevant competition authorities in Europe. For the year to 30 June 2005, Cleanaway UK had sales of £485 million (US$901 million) and comparable operating profit1 of £22 million (US$41 million) after management charges and the costs of the Cleanaway Global office. The value of the gross assets as at 31 December 2005 was £340 million (US$587 million). The pre-tax profit on the sale is expected to be approximately US$0.7 billion. Source: Press Release
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