Brambles to Create Energy Container JV with Hoover Container Solutions

   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 [e-mail]

(END) Dow Jones Newswires

August 04, 2016 19:55 ET (23:55 GMT)

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