Bidders face long wait for Loscam insight

Loscam describes itself as a trusted name in pooling and returnable packaging solutions for supply chains.

About three or four bidders are understood to have submitted offers for $3bn-plus logistics company Loscam, with Kohlberg Kravis Roberts among the suitors.

It is understood that groups interested in the business face a fair wait to gain an insight on their level of success, with feedback on the offers due around mid-August.

Working with KKR has been Morgan Stanley, while other parties mentioned as possible suitors are The Carlyle Group, Blackstone and Brookfield.

CVC has shown interest before, as have Stonepeak and Morrison & Co, but they are not thought to have made bids, according to market sources.

China Merchants purchased the business in 2010 for $US650m in a deal involving Credit Suisse and Deutsche Bank, and in 2018 it sold down a 55 per cent interest to CITIC Capital Partners and FountainVest.

Parties have been told all of Loscam is for sale – the Australian and New Zealand operations, the Southeast Asia business and the Chinese operation that includes the Chep China it bought from Brambles.

Others say the preference of some of Loscam’s owners is that it is broken up and offloaded to different groups, which could create an opportunity for the Greenhill-advised Brambles to buy the Southeast Asia operation.

Brambles would not gain approval from the Australian Competition & Consumer Commission to buy the Australian operations.

Working for Loscam is investment bank UBS, which oversaw the earlier management presentations to the 10 parties approached to compete and the bidding process.

It is understood that management presentations have been held with the prospective suitors and first-round bids are expected to be due in mid-July.

Loscam fits the description of “core plus” infrastructure, where the assets have steady earnings streams.

It is believed that the annual earnings before interest, tax, depreciation and amortisation for the Australian, New Zealand and Asian operations, including China and Southeast Asia, are at least $200m.

Loscam’s owners are looking for a price somewhere between 13 and 15 times that number, which puts the sale price at more than $3bn.

The logistics business describes itself as a trusted name in pooling and returnable packaging solutions for supply chains.