China Merchants Group, the 138-year- old government-owned port operator, acquired Loscam Ltd. for an undisclosed price, gaining control of Australia’s second-largest supplier of wooden pallets used to move and store goods.
Management at Loscam will own a minority stake in the business, the Melbourne-based company said in an e-mailed statement today. The business was previously owned by its executives and buyout firm Affinity Equity Partners.
The purchase makes China Merchants, which has $39 billion in assets, the number one provider of reusable wooden pallets and plastic produce bins in seven Asian nations including Thailand, Indonesia and Singapore, the company said. Loscam pallets are painted red compared with the blue of larger Australian rival Brambles Ltd.
“Loscam is a business which has enjoyed strong historical growth, and it has the potential for significant future growth,” China Merchants President Fu Yuning said in the statement.
The sale price was at least A$650 million ($550 million), the Age newspaper reported without saying where it got the information. Matthew Mahon from Loscam’s external media adviser, Royce, declined to confirm the sale price.
Loscam was advised by Credit Suisse Group AG and Deutsche Bank AG while Bank of America Corp.’s Merrill Lynch unit was the adviser to China Merchants.
China Merchants’ businesses include stakes in Shanghai Port, Shekou Containers Terminals Ltd., Haihong Coatings Co. and China Merchants Bank. It was founded in 1872 according to Loscam’s statement, which also provided the figure China Merchants’ assets.
Management at Loscam will own a minority stake in the business, the Melbourne-based company said in an e-mailed statement today. The business was previously owned by its executives and buyout firm Affinity Equity Partners.
The purchase makes China Merchants, which has $39 billion in assets, the number one provider of reusable wooden pallets and plastic produce bins in seven Asian nations including Thailand, Indonesia and Singapore, the company said. Loscam pallets are painted red compared with the blue of larger Australian rival Brambles Ltd.
“Loscam is a business which has enjoyed strong historical growth, and it has the potential for significant future growth,” China Merchants President Fu Yuning said in the statement.
The sale price was at least A$650 million ($550 million), the Age newspaper reported without saying where it got the information. Matthew Mahon from Loscam’s external media adviser, Royce, declined to confirm the sale price.
Loscam was advised by Credit Suisse Group AG and Deutsche Bank AG while Bank of America Corp.’s Merrill Lynch unit was the adviser to China Merchants.
China Merchants’ businesses include stakes in Shanghai Port, Shekou Containers Terminals Ltd., Haihong Coatings Co. and China Merchants Bank. It was founded in 1872 according to Loscam’s statement, which also provided the figure China Merchants’ assets.