Dive Brief:
- Three global container solutions companies serving the energy, petrochemical and general industrial markets are merging to form Hoover Ferguson Group.
- Hoover Container Solutions, Ferguson Group and CHEP Catalyst & Chemical Containers (CCC) expect the deal to close in October, subject to customary conditions. Ferguson and CCC owner Brambles will form a 50:50 joint venture with Hoover owner First Reserve.
- The combined businesses will be the second-largest global provider of container logistics, according to Brambles, operating more than 70 service centers and 110,000 rental units worldwide.
Dive Insight:
“Our interest in HFG will enhance our position in the Oil & Gas and Chemicals container logistics sector without the need for additional capital deployment, and creates a strong capital structure for the venture while enabling us to maintain strategic optionality over our future investment,” said Brambles’ CEO Tom Gorman.
The container shipping industry has struggled with a number of pressures, including a supply and demand imbalance, in recent years. Industry consolidation has been an attractive solution for businesses looking to close the gap.
The merged business had a pro-forma sales revenue of $217 million in 2015, with a presence in North America, the North Sea, Latin America, the Middle East, Australia and Southeast Asia. Donald W. Young, CEO of Hoover, will lead the new company, with a management team comprised of senior executives from Ferguson, CCC, Hoover and Brambles.
