Positive, because Cleanaway was underperforming in ROI. Buying...

Positive, because Cleanaway was underperforming in ROI. Buying Ausdoc is strategically sound to corner the market with the existing Recall division.

Good strategic play by BIL, IMO.



Brambles to sell Cleanaway Germany for $893m

17:35, Thursday, 13 October 2005
Sydney - Thursday - October 13: (RWE Australian Business News) -

Brambles Industries Ltd (ASX code: BIL) today announced the sale of Cleanaway Germany to SULO, the Germany-based waste management group, for
$893 million (387 million pounds) in cash.

The sale is subject to approval from the relevant competition authorities in Europe, a process that may take a few months.

Cleanaway Germany had sales of $886 million (360 million pounds) in the year to June 30 and profit before interest, tax, goodwill amortisation and significant items of $88 million (36 million pounds).

The pre-tax profit on the sale will be about $120 million (50 million pounds) under both UK GAAP and IFRS reporting.

Chief executive Mr David Turner said: "This is a very good outcome for Brambles that illustrates our focus on creating shareholder value.

"Cleanaway Germany has been well-managed and this is reflected in the attractive price that has been agreed.

"We will use the proceeds to invest in the further growth of our other businesses while, at the same time, reducing debt."

Mr Turner said SULO planned to integrate the Cleanaway Germany businesses with its existing and significant German waste management operations.

"We will continue to focus on growing shareholder value in Brambles, through the rigorous management of our businesses and investing in growth," he said.


Sydney - Thursday - October 13: (RWE Australian Business News) -

Brambles Industries Ltd (ASX code: BIL) has agreed to buy AUSDOC, the Melbourne-based information management business, from ABN AMRO Capital for $260 million (112 million pounds) in cash.

The acquisition is conditional on approval from the Australian Competition and Consumer Commission and Foreign Investment Review Board, with a decision expected before the end of 2005.

AUSDOC operates in all major regions in Australia, as well as selected markets in Canada and Indonesia, providing information management services such as document indexing, storage and retrieval for its customers.

The business reported sales of $70 million (28 million pounds) in the year to June 30 and underlying earnings before interest, tax and goodwill amortisation of $16 million (7 million pounds).

Brambles chief executive Mr David Turner, said AUSDOC was a high-quality business that would fit well with the existing operations of Recall in Australia.

"The acquisition of AUSDOC has been an important strategic objective for some years," Mr Turner said.

"It underpins our overall strategy for Recall, will further
develop our information management business in Australia and will deliver significant synergies.

"Recall and AUSDOC have similar business profiles, complementary customer bases and similar operating styles and systems.

"We expect the acquisition to be earnings positive before amortisation in the first full year and to contribute to Brambles Value Added after the first two years," he said