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In a short statement posted to the ASX this morning, Australian logistics services company Brambles (ASX: BXB) has confirmed it is in discussions with CVC Capital Partners about a potential takeover.
The deal, reportedly worth $20 billion, would see private equity firm CVC acquire all of the shares in Brambles.
Brambles notes the unsolicited takeover offer is still in the preliminary stages, and there has been no formal proposal received from CVC.
“Brambles also notes that there is no certainty that the engagement will lead to a binding proposal being received from CVC,” BXB said.
“The board and management remain focused on implementing the ‘Shaping our Future’ transformation plan, which builds on the strength of Brambles' sustainable business model to transform the business and unlock value for customers and shareholders.
“They do so against the backdrop of recent performance improvement, the future potential identified in the transformation plan and the good progress made to date in implementing that plan, as set out recently in our trading update of 21 April 2022.”
That trading update told a story of a company grappling with supply chain constraints, particularly as pallet scarcity continued to push up costs for the outfit which has global operations under the brand CHEP.
Nevertheless, BXB raised its profit growth guidance by three percentage points rom 3-5 per cent to 6-7 per cent, while the previous maximum of sales guidance is now the minimum in an 8-9 per cent range.
Brambles also notched 7 per cent higher sales during the first nine months of FY22, reaching more than $4 billion.
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