Brambles pulls out of Indian market with $129m sale
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The news: Logistics giant Brambles will exit the Indian market after more than a decade with the sale of its CHEP India unit to local returnable packaging services provider LEAP India.
The numbers: Brambles sold the CHEP India business for an enterprise value of 7,150 million rupees ($129 million), with the transaction expected to be completed by the end of the first quarter of 2025.
The cash proceeds from the transaction of approximately USD75 million ($114 million) will be used to reduce outstanding debt and Brambles will recognise a profit on sale of approximately USD25 million.
The context: The pallets and containers supplier said it made good progress to become an established player in the Indian market, but creating meaningful value from further investment in CHEP India requires a long-term timeframe.
What they said: “Accordingly, this transaction reflects our disciplined approach to capital allocation and recognises the outstanding work the CHEP team in India have done in establishing a strong foundation and a valuable business in what is a large but complex and still early-stage market for pooling services,” Brambles CEO Graham Chipchase said.
The source: ASX announcement
