Loscam owners including CMG, Citic consider selling pallet company in US$2 billion-plus deal, sources say
- Company jointly owned by China Merchants Group, Citic Capital and Fountainvest Partners has approached a number of potential buyers: sources
- Loscam hires out pallets and other packaging equipment in 12 Asia-Pacific countries to transport goods
Owners of Asian pallet pooling provider Loscam are considering a sale of the entire company in a deal that could fetch over US$2 billion, three people with knowledge of the situation said.
Loscam, which is jointly owned by China Merchants Group (CMG), Citic Capital and Fountainvest Partners, has approached a number of potential buyers, including infrastructure funds, to discuss the sale, the people said.
The discussions are at an early stage and the structure of the deal is not finalised, the sources said.
The owners are aiming to wrap up the sale by the end of the year, said a fourth person with direct knowledge of the deal.
Loscam hires out pallets and other returnable packaging equipment for retailers and food, beverage and grocery manufacturers in 12 Asia-Pacific countries to transport goods.
Its estimated earnings before interest, taxes, depreciation, and amortisation (Ebitda) are about US$200 million, said two of the sources.
Loscam’s valuation ask could exceed US$2.5 billion based on a multiple in the low teens over its Ebitda, one of them said.