MELBOURNE, June 4 (Reuters) - Australia’s Brambles Ltd , the world’s leading pallet supplier, said on Monday it has decided not to sell its $2 billion Recall information management business because of choppy markets and low offers, ending a 10-month sale process.
Sources told Reuters previously Brambles had held talks with document destruction company Shred-it and Ohio-based Cintas Corp about Recall.
Earlier in the year, several private equity firms, including Apollo Global Management, Thomas H. Lee Partners and Onex Corp, considered buying Recall, but their interest cooled due to a substantial valuation gap, sources said.
“Amid challenging capital markets conditions, and following complex negotiations, offers from bidders for Recall did not reflect its value or offer sufficient certainty,” Brambles said in a statement.
After deciding to retain the business, Brambles also said it will undertake a 1-for-20 pro rata entitlement offer to raise A$448 million ($432 million) at A$6.05 per share, a discount of 10.9 percent to the last closing share price. It will use the proceeds to retire debt.