Brambles says it has agreed to sell its CHEP Recycled whitewood pallet business to Grey Mountain Partners for $US115 million ($A161 million).
Brambles has inked a deal to sell North American whitewood pallets business CHEP Recycled to private equity firm Grey Mountain Partners for $US115 million ($A161 million).
Grey Mountain Partners will take over 73 total pallet management (TPM) sites and 2,400 employees from CHEP Recycled, while Brambles will retain 88 plants and TPM sites that service the CHEP US pooled pallets business and around 1,600 employees.
CHEP Recycled provides a network of pallet management services in the USA and Canada suppling and recycling more than 90 million, primarily whitewood, pallets annually.
The company classified the business as "held for sale" and labelled it a discontinued operation in its full-year results in August when Brambles' net profit fell 69 per cent to $US182.9 million in the year.
Its profit was weighed down by challenging operating conditions in the US pallets division and a $US243.8 million non-cash impairment in CHEP Recycled.
Brambles on Tuesday said it expects the sale, which is subject to regulatory approval, to be completed within 45 days.
The company's shares had risen four cents, or 0.4 per cent, to $10.07 by 1114 AEDT on Tuesday.