Brambles Limited has announced the acquisition of Ferguson Group as part of its plans to expand its specialist containers business. Ferguson Group is a leading provider of container solutions to the offshore oil and gas sector. Brambles will fund the £320 million (US$545 million) transaction from its existing committed debt facilities, and expects to complete the transaction by the end of September 2014.
Brambles CEO Tom Gorman explains that Ferguson Group is a very strong fit for Brambles, consistent with its strategy of diversifying in segments with strong equipment pooling and growth characteristics. Combined with Brambles’ presence in the downstream refining sector through CHEP Catalyst & Chemical Containers, Ferguson Group provides a platform for further expansion of their containers offering in oil and gas.
According to Mr Gorman, Ferguson Group has a record of compound annual growth in sales revenue of 11% since 2009, a compelling organic growth outlook, and attractive margin and return on capital characteristics, which are strongly aligned with Brambles’ objectives to create sustainable value for shareholders.
Headquartered in the UK, Ferguson Group is a provider of approximately 18,500 common, standardised containers for the transport of a wide variety of equipment, fluids and other items to and from customer facilities in the offshore oil and gas sector. Operating regional hubs in the UK, Norway, Singapore, Australia and the United Arab Emirates, the company has strategic business partners in other key industry locations worldwide.
Ferguson Group Chairman, Steven Ferguson will remain as a senior advisor for six months subsequent to completion of the acquisition to assist with transition matters. The remainder of Ferguson Group's key management team will continue to run the business as part of the Brambles Group.