Brambles Expands Reusable Plastic Container Business Further Through Buy-out of Other Shareholders in IFCO Japan

IFCO SYSTEMS, a Brambles Company, is pleased to announce it has agreed to acquire the two thirds of IFCO Japan it did not already own in a transaction that places an enterprise value on IFCO Japan of ¥[4.84] billion (US$[39.7] million ).

IFCO SYSTEMS’ CEO, Wolfgang Orgeldinger, said: “Gaining full ownership of IFCO Japan is a key strategic step for IFCO in the continued expansion of our reusable plastic crate (RPC) business, which serves retailers and fresh food producers in most of the world’s major economies. The transaction offers a strong internal rate of return as it stands, with upside available as we focus on improving sales and marketing disciplines and driving stronger returns, including through potential synergies with IFCO globally. The acquisition – our largest investment in Japan to date - complements our ongoing assessment of opportunities in the RPCs segment and elsewhere in Asia.”

IFCO Japan generated sales revenue of ¥[3.01] billion (US$[24.7 million1) and EBITDA of ¥[818] million (US$[6.7] million1) in the Japanese financial year ended 31 March 2015.

IFCO Japan is one of two established RPC poolers in Japan. It was founded in 1995 and, prior to Brambles’ full acquisition, was jointly owned by Mitsubishi Plastics, IFCO and Meiji Rubber & Chemical. IFCO Japan has service centres in Gifu and Saitama near the cities of Nagoya and Tokyo respectively and employs 30 people. The business serves a diverse customer base comprising leading Japanese retailers, fresh produce growers, cooperatives and wholesales. Key management will remain with the business.

Additional Information

IFCO is the leading global provider of reusable packaging solutions, operating a pool of over 200 million Reusable Plastic Containers (RPCs) in 34 countries. IFCO RPCs are used primarily to transport fresh products from producers to leading grocery retailers worldwide. IFCO's solutions help retailers and producers reduce costs and increase sales by maximizing efficiency, product protection, sustainability, and safety throughout their supply chains. IFCO is a member of the Brambles family of companies. For more information, visit www.ifco.com.

About Brambles

Brambles Limited (ASX:BXB) is a supply-chain logistics company operating in more than 60 countries, primarily through the CHEP and IFCO brands. The Group specialises in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates and containers. Brambles primarily serves the consumer goods, dry grocery, fresh food, retail and general manufacturing supply chains. In addition, the Group operates specialist businesses serving the automotive, aviation, and oil and gas sectors. Brambles employs more than 14,000 people and owns approximately 500 million pallets, crates and containers through a network of approximately 1,000 service centres. For further information, please visit www.brambles.com.

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