Emirati Investor Secures Strategic Stake in APAC Packaging Leader
The deal revolves around a share purchase agreement dated 26 June 2025, under which Mubadala, via its wholly owned Abu Dhabi Global Market entity, will invest approximately US$566.6 million, valuing Loscam at around RMB 11.8 billion as of 31 December 2024. The acquisition comprises a 25 per cent stake acquired from Sinotrans' China Merchants Shipping subsidiary for roughly US$472.2 million, complemented by smaller buys—3 per cent from CITIC Capital Maneuver and 2 per cent from FV Pallet.
Loscam traces its roots to 1942 and is headquartered in Hong Kong, with operations across 12 Asia‑Pacific markets, including Australia, New Zealand, Southeast Asia and Greater China. Specialising in pallet pooling and returnable packaging, the company offers leasing, maintenance and cleaning services to key supply chain players within fast-moving consumer goods, retail and manufacturing sectors.
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Financial data shows Loscam posted a slight increase in post‑tax profit from RMB 458.3 million in 2023 to RMB 477 million in 2024, with net assets at year‑end reported at RMB 5.66 billion. The valuation is supported by a comparables-based EV/EBITDA multiple of approximately 11x as projected by independent appraisal firm Vocation International Asset Appraisal.
Under the revised shareholder structure, Mubadala and Trustar Capital will each hold 30 per cent, while FountainVest will retain 20 per cent. Sinotrans' indirect holding is reduced to 20 per cent, maintaining its associate relationship with Loscam.
Regulatory compliance remains a key condition ahead of finalisation. Clearances are required from competition authorities across China, Australia, the EU, as well as foreign investment approval under Australia's Foreign Acquisitions and Takeovers Act. The agreement further stipulates a dividend distribution totalling US$740 million to all shareholders at completion, with Sinotrans due about US$148 million.
This strategic investment dovetails with Mubadala's broader tendency to back asset‑heavy, resilient sectors. The Abu Dhabi fund already holds logistics interests via the Australian Logistics Platform and PCI Pharma Services, and has earlier taken major positions including a 49 per cent share in Spain's Tubacex OCTG business. Analysts say investing in sustainable, circular‑economy solutions aligns with global supply chain de‑risking and ESG imperatives.
Loscam's business model gives it a competitive edge. Pallet pooling services enhance sustainability and efficiency by reducing waste and operational costs—a critical component for packaging‑intensive industries. Its scale across 12 markets enables it to serve multinational clients with standardised platforms. The company competes with regional rivals such as Brambles' CHEP network, which previously exited parts of the Chinese market and transferred operations to Loscam in a US$132 million deal, highlighting Loscam's growing influence in APAC's supply chain infrastructure.
While the share purchase agreement has formalised the investment, closing hinges on regulatory approval and financing conditions. The arrangement includes a mechanism to reduce purchase price by 30 per cent of any leakage—a term covering unauthorised asset transfers or payments—emphasising transactional rigour.
For Mubadala, entry into Asia‑Pacific logistics via a major pallet pooling business broadens its diversification strategy in response to global supply chain vulnerabilities and ESG trends. The deal shines a light on rising appetite for asset-backed infrastructure in the region. With Loscam's long operational history and established regional footprint, Mubadala stands to gain in both returns and strategic influence.
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