09Dec2010
CHEP’S PARENT BUYING IFCO
Transaction, creating an entity with $5 billion in sales, expected to be complete by end of next summer.
CHEP’s parent company, Brambles Limited, plans to acquire IFCO Systems, a leading provider of reusable plastic containers (RPCs) in 23 countries, as well as pallet management services in the United States. IFCO’s U.S. headquarters are in Houston.
“The transaction will enhance Brambles’ position as a global leader in pooling solutions, creating an entity with sales revenue of approximately US$5 billion,” according to the company.
The scale of the transaction requires review from the applicable regulatory authorities, as is common with transactions of this size and nature. During this period of review, expected to be completed within nine months, both companies will continue to operate as separate entities.
CHEP Americas Group President Jim Ritchie said, “This transaction represents a tremendous opportunity for our customers that supports our growth plans in RPCs and pallets. Our customers can expect no service interruptions during the regulatory review period, and significant service enhancements in the medium to long-term, including product and service innovation and greater value delivery.”
Brambles CEO Tom Gorman noted that “The purchase of IFCO represents a unique opportunity for Brambles to enhance its position as the world’s leading pooling solutions provider and acquire operations with a strong growth profile. IFCO is a natural fit with Brambles’ existing RPC and pallet businesses and will allow us to continue to deliver on our strategy of diversifying our revenue base by product platform, geography and customer type.”
Once approved, the transaction would create an entity with sales revenue of approximately US$5 billion, of which more than US$4 billion would come from pooling and pallet services. The Brambles group would have more than 16,000 employees, working in 49 countries across six continents under the CHEP, IFCO, Recall, Lean- Logistics and Unitpool brands Limited. For more information, visit www.chep.com.
MERIDIAN ADOPTS DATEX WMS
Following a $15 million dollar renovation, Meridian Cold Storage (www.meridianfreezer.com), Sarasota, Fla., has adopted Datex FootPrint (www.datexcorp.com) warehouse management software (wms). Clearwater, Fla.-based Datex worked in concert with the International Association of Refrigerated Warehouses (www.iarw.org), Alexandria., Va., as it developed the Microsoft .NET based wms. The system has an ePortal developed using Microsoft Silverlight, which provides an enriched user interface allowing users to view inventory and billing. It can also create custom reports that can be exported to any required format. Datex FootPrint allows the capturing of billing events and the automatic creation of invoices on a set schedule. Features designed for refrigeratede warehouses include the ability to track lot and date codes, blast freezing fees, capture temperatures, automate accessorial charges and serial numbers. The system records transaction activity specific to each combination of client, project and product and automatically calculates billing charges for inbound handling, storage and renewal storage.
LOGISTICS LEDGER
ACQUISITIONS
Bay Grove Capital (www.baygrovecapital. com), the San Francisco investment firm, has acquired Flint River Services (www.flintriverservices. com), the Albany,Ga.-based cold storage company. The deal was facilitated through the holding company Southeast Cold, LLC, and adds to Bay Grove’s portfolio of cold storage companies, which includes West Coast Cold, LLC — parent of CityIce and Seafreeze Cold Storage, the largest cold storage company in Seattle. Terms were not disclosed. With over 30 million cubic feet of temperature controlled storage capacity, Flint River is one of the country’s largest independent cold storage companies. It operates Georgia-based campuses in Albany, Unadilla and Rincon/ Savannah and has provided cold storage services to customers in the poultry, peanut, blueberry, and frozen food industries for over 18 years. Key management will remain with the company and the business will continue to operate as Flint River Services… United Parcel Service, Atlanta, has agreed to sell its UPS
Logistics Technologies unit to Thoma Bravo, LLC, the San Francisco-based private equity investment firm (www.thomabravo.com).
Terms were not disclosed for the deal, which is expected to close by year’s end. Headquartered in Baltimore, UPS Logistics Technologies (www.upslogisticstech.com) creates high-tech transportation routing and fleet management systems. Transportation management applications provide street-level route plans, real-time wireless dispatch and GPS and strategic territory planning. Customers use the technology and tools for effective fuel management and driver productivity…
COMPANY NEWS
Hillsboro, Ore.-based Henningsen Cold Storage Co. (www.henningsen.com) was honored Nov. 18 with a 2010 Excellence in Family Business Award from Oregon State University’s Austin Family Business Program. The awards recognize the achievements of family businesses in innovation, entrepreneurship, commitment and community involvement. Henningsen won the top large business award for firms with 100 or more employees… Klinge Corporation, York, Pa., has donated a second 20-foot refrigerated container system and external generation set to an orphanage in cholera-stricken Haiti for the storage of food and medicine. The first donation by Klinge was made six months following the devastating earthquake in January. Henrik Klinge, president and owner, said: “The cholera outbreak in Haiti has made an already terrible situation worse. It is our hope that this donation will provide relief to the orphanage.”… A simplified identity is now in place for Omaha, Neb.-based Millard — formerly known as Millard Refrigerated Services — reflecting its growing list of services. “It’s been clear to us for some time that Millard is far more than just refrigerated services,” said Lance Larsen, president & CEO. “The more straightforward name really indicates just how much value the name represents. From warehousing and storage to logistics and delivery, not to mention all the technology and experience that helps add value to the product we have on site — Millard’s identity can no longer be limited to one category.”
The announcement coincides with the company’s recent general managers’ meeting in Omaha and the launch of a new website — www.millardref.com.
