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Brambles sells aerospace unit for $US130m

AAP logoAAP 1/11/2016

Logistics giant Brambles will sell its airline container business for $US130 million ($A170 million) to global private equity group EQT Infrastructure.

Brambles expects to make a small profit from the sale of CHEP Aerospace Solutions, which serves more than 90 airlines, including Qantas, American Airlines and British Airways.

The company said the divestment will not impact its full-year revenue or profit guidance and the cash proceeds will be used to reduce debt.

"Under EQT Infrastructure's ownership, we believe CHEP Aerospace Solutions will have the continued financial and operational strength to deliver ongoing best-in-class service to its global airline customers and to capitalise on future growth opportunities," Brambles chief executive Tom Gorman said in a statement on Wednesday.

Brambles said it had struck a binding agreement with EQT Infrastructure and the transaction will be completed in November.

The company has reaffirmed its guidance for an underlying profit of between $US1.055 billion to $US1.075 billion - growth of nine to 11 per cent - for the 2017 financial year.

It made a full-year net profit of $US587.7 million ($A766.9 million) in the 2016 financial year, up only one per cent on the previous year.

Brambles formed CHEP Aerospace Solutions in November 2011 following the acquisition and integration of four container and pallet logistics companies.

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