Peco Pallet Inc., a high-profile provider of pallet rentals and services to the food service, grocery and consumer products industries, said it will be acquired by investment firm Alinda Capital Partners and USS, the largest U.K. pension fund.
The transaction, announced Monday, is expected to be concluded within the next two weeks, Irvington, New York-based Peco said in a statement. Terms of the transaction were not disclosed.
Alinda and USS jointly own the Virginia International Gateway, the largest privately held container terminal in the U.S. London-based Alinda also has an 11% ownership of London’s Heathrow International Airport. Both entities have extensive transportation and logistics experience.
The growth of e-grocery services has boosted demand for vertically integrated firms like Peco, which builds, services and distributes its equipment.
Privately held Peco’s North American pallet pool network consists of 21 million pallets across 80 facilities. The new owners will retain Peco’s management and operations team, it said.