Brambles snaps up Ferguson with eye to energy sector


Purchase of exploration and production containers firm hot on heels of Transpac buy

Brambles snaps up Ferguson with eye to energy sector
Tom Gorman is keen on diversifying

 

Brambles has bolstered its oil and gas containers segment with the of £320 million ($555 million) purchase of UK equipment and fluids container firm Ferguson Group.

The move comes three months after it boosted its pallets business with the acquisition of German pooled intermediate bulk container (IBC) services firm Transpac.

The buy has a local component, with Ferguson boasting a regional hub in Perth, which provides 15 per cent of its revenues and 24 employees, as well as the UK, Norway, Singapore and the United Arab Emirates.

"Ferguson Group is a very strong fit for Brambles, consistent with our strategy of diversifying in segments with strong equipment-pooling and growth characteristics," Brambles CEO Tom Gorman says.

"Combined with our presence in the downstream refining sector through CHEP Catalyst & Chemical Containers, Ferguson Group provides a platform for further expansion of our Containers offering in oil and gas."

The Ferguson purchase is part of a wider strategy to broaden its containers offering that includes acquisitions.

"While non-acquisitive growth was robust in the containers segment in FY14, we have improving momentum with product launches and contract wins and continue to assess a broad range of organic and acquisitive growth opportunities that offer growth and return characteristics in line with the group’s long-term targets," the company says in its annual results.

 

You can also follow our updates by joining our LinkedIn group or liking us on Facebook