Australia-based pallets and container maker Brambles has signed an agreement with Triton and Luxinva to offload its IFCO reusable plastic containers (RPC) business for a total consideration of $2.51bn.

Triton and Luxinva is a wholly owned subsidiary of the Abu Dhabi Investment Authority.

IFCO offers RPC pooling solutions, which cater to the supply chain needs of grocery retailers across Europe, North America, Latin America, Japan, and China.

Brambles chairman Stephen Johns said: “In August 2018, we announced that we would seek to separate IFCO through either a demerger or a sale by way of a dual track process.

“As well as progressing the demerger option, a robust and competitive sale process generated strong interest.

“We are pleased today to announce the sale of IFCO, which we believe delivers greater value for shareholders, including a significant return of cash proceeds to shareholders.”

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The deal is currently subject to customary regulatory approvals and will close during the second quarter of this year.

Brambles is planning to return up to $1.95bn of proceeds, including a pro-rata return of $300m in cash and an on-market share buy-back of up to $1.65bn, to shareholders as part of the transaction.

“The sale will allow Brambles to focus on our strategic priorities and to pursue continued revenue growth within our core markets.”

The company will use the remaining amount of the total $2.51bn to repay debt to maintain leverage in line with the board-approved credit policy.

Brambles CEO Graham Chipchase said: “The sale will allow Brambles to focus on our strategic priorities and to pursue continued revenue growth within our core markets while also reviewing additional opportunities in emerging markets through product and service innovation and use of technology through the supply chain.

“Our ambition remains to lead the platform pooling industry in customer service, innovation and sustainability.”

Brambles operates a network of more than 850 service centres and owns approximately 630 million pallets, crates and containers. It has around 11,000 employees working across its operations in more than 60 countries.