Brambles has agreed to sell CHEP Recycled, its non-core North American recycled whitewood pallet business, to a Colarado-based private equity firm.

CHEP Recycled supplies and recycles more than 90 million pallets - primary whitewood - annually, across a network of pallet management services in the US and Canada.

In August last year, Brambles made known its intention to divest CHEP Recycled and this week, announced that it had entered into an agreement to sell the business to Grey Mountain Partners for an enterprise value of US$115 million (AU$147 million). The cash proceeds will be subject to final adjustments on closing for balance sheet items. The transaction is subject to standard regulatory approval and is expected to be completed within 45 days.

CHEP Recycled currently manages 161 plants and total pallet management (TPM) sites, of which 73 sites service the CHEP Recycled business. Those 73 sites, together with approximately 2400 employees, are included in the sale and will transfer to Grey Mountain Partners on completion.

The remaining 88 plants and TPM sites that service the CHEP USA pooled pallets business will be retained by Brambles together with approximately 1600 employees. These 88 service centres will continue to form part of the core operations of the CHEP USA pooled pallets business and to be reported within the CHEP Americas segment.