IFCO SYSTEMS, a Brambles Company, has announced its agreement to acquire the two thirds of IFCO Japan it did not already own in a transaction that places an enterprise value on IFCO Japan of ¥[4.84] billion (US$[39.7] million ).
“Gaining full ownership of IFCO Japan is a key strategic step for IFCO in the continued expansion of our reusable plastic crate (RPC) business, which serves retailers and fresh food producers in most of the world’s major economies,” stated IFCO SYSTEMS’ CEO, Wolfgang Orgeldinger. “The transaction offers a strong internal rate of return as it stands, with upside available as we focus on improving sales and marketing disciplines and driving stronger returns, including through potential synergies with IFCO globally. The acquisition – our largest investment in Japan to date – complements our ongoing assessment of opportunities in the RPCs segment and elsewhere in Asia.”
IFCO Japan generated sales revenue of ¥[3.01] billion (US$[24.7 million) and EBITDA of ¥ million (US$[6.7] million1) in the Japanese financial year ended 31 March 2015.
IFCO Japan is one of two established RPC poolers in Japan. It was founded in 1995 and, prior to Brambles’ full acquisition, was jointly owned by Mitsubishi Plastics, IFCO and Meiji Rubber & Chemical. IFCO Japan has service centres in Gifu and Saitama near the cities of Nagoya and Tokyo respectively and employs 30 people. The business serves a diverse customer base comprising leading Japanese retailers, fresh produce growers, cooperatives and wholesales. Key management will remain with the business.