Grey Mountain Partners Fund III LP, managed by Grey Mountain Partners, LLC and Yukon Capital Partners III, L.P., managed by Yukon Partners Management, LLC entered into an agreement to acquire CHEP Recycled Pallet Solutions, LLC Brambles Limited for an enterprise value of approximately $120 million.
January 09, 2018
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Grey Mountain Partners Fund III LP, managed by Grey Mountain Partners, LLC and Yukon Capital Partners III, L.P., managed by Yukon Partners Management, LLC entered into an agreement to acquire CHEP Recycled Pallet Solutions, LLC Brambles Limited (ASX:BXB) for an enterprise value of approximately $120 million on January 9, 2018. Yukon Partners provided mezzanine capital and acquired a minority stake in the deal. The cash proceeds will be subject to final adjustments on closing for balance sheet items. The transaction includes 73 sites, together with approximately 2,400 employees and they will be transferred to Grey Mountain Partners on completion. The balance of 88 plants and TPM sites that service the CHEP USA pooled pallets business will be retained by Brambles together with approximately 1,600 employees. Norm Plotkin, former Chairman of Grey Mountain will assume the role of Chairman at CHEP Recycled. The transaction is subject to standard regulatory approval, antitrust regulations and is expected to be completed within 45 days. As on February 2, 2018, Federal Trade Commission granted an early termination notice of antitrust approval waiting period. Ken Lefkowitz and Michael Traube of Hughes Hubbard & Reed LLP acted as legal advisors to Brambles in the transaction. Ernst & Young LLP acted as accountant to Brambles Limited. Chris Ahn and Tom Dollinger of Proskauer Rose LLP acted as a legal advisor to Grey Mountain Partners. Larry Makel, Kevin C. Dooley, Stuart Chasanoff, Brandon Karas, Rachael Mozelewski, Kim A. Severson of Dorsey & Whitney LLP acted as legal advisor to Yukon Partners.
Brambles Limited is an Australia-based supply-chain logistics company. The Company is engaged in the provision of supply-chain logistics solutions, focused on the provision of reusable pallets and containers. Its segments include CHEP North America and Latin America (CHEP Americas); CHEP Europe, Middle East, Africa and India, including the North American automotive business (CHEP EMEA); CHEP Australia, New Zealand and Asia, excluding India (CHEP Asia-Pacific); and Corporate center (Corporate). CHEP Americas segment is engaged in the pallet and container pooling business in the Americas. CHEP EMEA segment is engaged in the pallet and container pooling business in EMEA (including the global CHEP Automotive container business) and the CHEP-branded reusable plastic crates (RPC) business in South Africa. CHEP Asia-Pacific segment is engaged in the pallet and container pooling business in Asia-Pacific and the CHEP-branded RPC business in Australia and New Zealand.
Grey Mountain Partners Fund III LP, managed by Grey Mountain Partners, LLC and Yukon Capital Partners III, L.P., managed by Yukon Partners Management, LLC entered into an agreement to acquire CHEP Recycled Pallet Solutions, LLC Brambles Limited for an enterprise value of approximately $120 million.