Carlyle shortlisted for Brambles Recall unit - report

According to the Australian Financial Review, the vendor's share price fell 1.1% to A$7.2 ($7.2) at the news.

Brambles, the world's largest pallet maker and supplier, announced plans to sell Recall last April in a bid to pay off its debts. A sale of the subsidiary could raise up to $1.9 billion, with UBS analyst Simon Mitchell telling The Australian at the time: "We believe private equity could afford to pay the most for Recall, which we estimate at $1.7 billion, in order to generate a 25% internal rate of return (IRR). This could rise to $1.9 billion on a thinner 20% IRR."

Several strategic buyers are also said to be interested in the deal.

Brambles' net profit for the year to June 30, 2011 was $475 million, compared to $449 million the previous year. Recall represents 15% of its parent company's EBITDA, while its turnover grew by 6% to $387.4 million in the first half of 2011.

 

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• Topics
• Australasia
• Industrials
• Buyouts
• Australia
• buyout
• The Carlyle Group