Logistics firm Brambles has agreed to merge its energy containers business with US-based Hoover Container Solutions to create an oil & gas containers solutions business with a global footprint.
Brambles and Hoover will own 50 per cent each in the new company, with Brambles to receive around $US75 million ($A98 million) from Hoover's major shareholder First Reserve to balance its stake.
The new company will be led by Hoover chief executive Donald Young, while Brambles will nominate the chief financial officer, with the deal expected to be completed in October.
Brambles also said it will take a non-cash charge of US$38 million against the value of its oil & gas assets in its FY16 results to reflect the current market conditions. The company maintained its guidance for constant-currency growth of 8 to 10 per cent in FY16 sales revenue and underlying profit.
