Brambles asset sale could fetch $3.5b - Yahoo!... -
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Published on: 11/30/2005
Last Visited: 11/30/2005
Goldman Sachs JBWere analyst Paul Ryan said the asset sale would improve Brambles' earnings growth.
"Brambles will be a clean, lean cash machine with earnings and cash flow generation driven by CHEP," he said in a report.
Potential acquirers for the Cleanaway business included existing competitors as well as new entrants to the sector such as private equity companies, Mr Ryan said.
Brambles Industrial Services will prove attractive to niche competitors and support service companies looking to enter new areas.
The residual Australian contracts are likely to interest logistics group Toll Holdings Ltd and industrial cleaning company Transpacific Industries Group Ltd, Mr Ryan said.
He also estimated that the Brambles share buyback could be as large as $4.2 billion.