KKR to Acquire the Australian Businesses of Cleanaway
and Brambles Industrial Services from Brambles Industries
Acquisition is KKR’s First Investment in
Australia
Hong Kong, Sydney, June 19, 2006 –
Kohlberg Kravis Roberts & Co. (“KKR”)
today announced that an affiliate of KKR has signed
a definitive agreement to acquire the Australian businesses
of Cleanaway and Brambles Industrial Services (“BIS”)
from Brambles Industries (LSE: BI; ASX: BIL) in a transaction
valued at approximately A$1.83 billion (US $1.35 billion).
The acquisition is KKR’s first investment in Australia
and represents the largest management buy-out ever in
that market.
Cleanaway is Australia’s leading waste management
operator, serving over 65,000 commercial customers and
87 municipalities across the country. The company provides
abroad range of services including collection, materials
recovery, recycling and disposal. Cleanaway employs
approximately 2,000 people in Australia.
BIS is the leading outsourced supplier of on-site and
off-site materials handling and logistics services to
the minerals, metals, and coal mining sectors, with
operations in all states of Australia. BIS’ on-site
activities include the management of non-core customer
processes and materials handling, and its logistics
business serves the oil and gas, cement, minerals ands,
salt, mining and food and beverage industries. BIS employs
more than 1,200 people in Australia.
Following completion of the transaction, Chris Berkefeld,
Managing Director of Cleanaway and BIS in Australia,
and the existing management teams, will continue to
lead the respective businesses.
Joseph Bae, Managing Partner of KKR Asia, said, “We
are very excited to be partnered with Chris and his
management team. Both Cleanaway and BIS are clear market-leaders
in Australia, with a tremendous record of delivering
superior levels of service to their customers in terms
of value, safety and innovation.”
Justin Reizes, a Director of KKR, added, “We
are committed to working with management to continue
to invest in Cleanaway and BIS to take full advantage
of the many growth opportunities available to the company.
These are world class businesses that we hope to take
to the next level.”
Chris Berkefeld, Managing Director of the Cleanaway
and BIS businesses in Australia, said,“This transaction
is an extremely positive development for all our employees,
customers and stakeholders in Australia. KKR is the
world’s premier private equity investment firm,
with a proven track record of working with companies
to maximize their long term potential.”
O’Sullivan Pullini acted as the exclusive financial
advisors to KKR on the transaction; Gilbert + Tobin
and Simpson Thacher & Bartlett LLP served as legal
counsel.
About KKR
KKR is one of the world’s oldest and most experienced
private equity firms specializing in management buyouts,
with offices in New York, Menlo Park, California, London,
Paris, Hong Kong and Tokyo. Over the past thirty years,
KKR has invested in more than 141 transactions with
a total value of US$195 billion.
The Brambles transaction is KKR’s third major
investment in Asia over the past year, including the
US$2.66bn buy-out of Avago Technologies in Singapore
in 2005, and the pending US$900m buyout of Flextronics’
software development and solutions business in India.
KKR has been an active investor in the waste services
and recycling industries,having acquired DSD in Germany
in 2005 and AVR in the Netherlands in early 2006. For
more information, please visit www.kkr.com.
Press Contact:
For KKR:
In Asia-Pacific:
Richard Barton
Gavin Anderson & Company
T: +852 2218 9988 or
M: +852 9308 1056
E: rbarton@gavinanderson.com.hk
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