Morrison & Co has agreed to acquire a 50% interest in a crate pooling business from Victoria-based Pact Group in a transaction valuing the Australasian business at A$380m (€225m).
Morrison, which is investing on behalf of the Morrison Growth Infrastructure Fund, is buying a stake in Crate Pooling, a business that holds long-term contracts with supermarket chains.
The new partnership would operate as an independent entity, with Pact retaining a 50% interest.
Pact said, net of costs and tax, it will receive about A$160m in cash from the sale and a further earn-out of A$20m.
The investment gives Morrison & Co its first exposure to the circular economy and Pact the capacity to accelerate growth in its business.
Mark Mudie, a partner at Morrison, said: “This is an attractive opportunity for our clients to gain exposure to the circular economy thematic, which aims to eliminate waste by keeping products and materials in use for as long as possible.
“We believe the circular economy can tackle some of our greatest social and environmental challenges while unlocking economic value for our investors.”
Pact CEO and managing director, Sanjay Dayal, said: “This new strategic partnership with Morrison & Co is a great outcome for our customers as it will accelerate the growth of the business and offer an expanded range of products and services, with Pact sharing in the upside.”
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