Brambles Industries PLC
30 June 2006
Brambles Industries plc
Company Number: 4134697
30 June 2006
BRAMBLES AGREES TO SELL CLEANAWAY UK
Brambles today announced that it had agreed to sell Cleanaway UK to Veolia ES
Holdings plc, a subsidiary of Veolia Environnement S.A., a world leader in
The total cash consideration for the sale is £595 million (US$1,081 million). In
addition, Veolia has assumed responsibility for the defined benefit pension
funds of Cleanaway UK, which had an FRS17 deficit of £56 million (US$101
million) as at 30 June 2005.
The Chief Executive Officer of Brambles, David Turner, said: 'The sustained
improvement in Cleanaway UK's performance this year has led to the attractive
price and clean exit that have been agreed.
'Brambles' divestment programme is now essentially complete and has generated
total proceeds of US$3.52 billion, significantly more than our initial
In addition to Cleanaway UK, the businesses that have been divested are
Cleanaway Germany, Cleanaway Australia and New Zealand, Brambles Industrial
Services Northern Hemisphere, Industrial Services Australia and the Regional
Businesses. Brambles will now concentrate on its premium growth businesses of
CHEP and Recall. The divestment proceeds will be used in accordance with
Brambles announcement of 29 November 2005.
The sale is conditional upon approval from the relevant competition authorities
For the year to 30 June 2005, Cleanaway UK had sales of £485 million (US$901
million) and comparable operating profit1 of £22 million (US$41 million) after
management charges and the costs of the Cleanaway Global office. The value of
the gross assets as at 31 December 2005 was £340 million (US$587 million).
The pre-tax profit on the sale is expected to be approximately US$0.7 billion.
Cleanaway UK is one of the largest collectors of municipal, commercial,
industrial and trade waste in England and Wales and operates a specialist fleet
of approximately 2,000 vehicles. Cleanaway UK's waste disposal operations
receive domestic, commercial and industrial dry waste and handle approximately
150,000 tonnes of liquid chemical waste per annum.
Cleanaway UK employs more than 7,500 people and operates a nationwide network of
service centres, a high temperature hazardous waste incinerator and four active
Veolia Environnement is a leading player in environmental services. With more
than 270,000 employees the company has operations all around the world and
provides tailored solutions to meet the needs of industrial and municipal
customers in four complementary segments: water management, waste management,
energy management and passenger transportation.
1. Comparable operating profit is defined as profit before special items,
finance costs and tax.
Investor Sue Scholes, Head of Investor Relations +44 (0)20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0)20 7269 7291
Investor John Hobson, Head of Investor Relations +61 (0)2 9256 5216
+61 (0)414 239 188
Media David Besier, Manager Corporate +61 (0)2 9256 5204
+61 (0)412 473 330
Brambles is globally headquartered in Australia
This information is provided by RNS
The company news service from the London Stock Exchange