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Brambles Buys Paramount Pallet
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Date Posted: 1/1/2012
Expanding its influence in the Canadian market, Brambles Limited, the parent company of CHEP Canada, has acquired Toronto-based Paramount Pallet. As one of the largest pallet companies in the country, Paramount operates eight facilities across Canada and describes itself as “Canada’s only national provider of complete pallet services.”
Paramount Pallet is the single largest member of the Canadian Pallet Council (CPC), contributing about 20% of the total CPC pallet pool through its rental program. Paramount is also the largest provider of services such as repair, sales and retrieval in the country. Its strategic partnership with IFCO Systems ensures seamless pallet services to cross-border customers, according to Paramount.
James Hall, the director of external communications for Brambles, said, “The primary reason for the acquisition of Paramount is to provide customers with a greater range of products and services. It will allow CHEP Canada to expand its network and offer an enhanced service to existing and potential customers. Like IFCO, Paramount operates a white-wood pallet management services business, which CHEP does not presently offer in Canada. These types of businesses can help CHEP strengthen its total network and offer a greater range of products and services to customers.”
Brambles stated that it intends to maintain and support Paramount’s existing operations, including the pooling and repair services it provides to CPC customers. Key Paramount executives will remain with the company to assist in the integration process as well as manage ongoing operations.
As the largest player in the CPC market, some in the Canadian sector are curious to see what will play out of this acquisition. Hall said, “We will continue to provide both block and stringer pallets and Paramount’s services will be part of that offering. The hardwood stringer is the primary pallet used in Canada and is still the platform of choice for domestic moves within Canada from a quality, durability and product protection perspective. As an additional offering, we will continue to offer the block pallet especially for customers considering cross-border flows to the USA.”
Brambles paid US$13 million to acquire Paramount. Combined CHEP Canada and Paramount will operate across 34 locations in six of Canada’s provinces, employing approximately 750 people. Paramount was formed in 2005 after a group of industry veterans purchased the assets of IFCO Systems Canada Inc.
Looking to the future, Hall said, “There are no other acquisitions in Canada on the agenda at this time.”