Rose And Walsh Back Pallet-Maker's AIM Float

An international cast of heavyweights led by the former bosses of Marks & Spencer (Other OTC: MAKSY - news) and Diageo (LSE: DGE.L - news) is joining the board of a fast-growing business which manufactures pallets for use by some of the world's largest companies.

Sky News understands that RM2, a privately-owned group which is headquartered in Switzerland, has recruited Sir Stuart Rose, the former M&S chairman, and Paul Walsh, who recently stepped down as chief executive of the drinks giant Diageo, to become non-executive directors ahead of a flotation on London's AIM stock market.

RM2 has appointed Cenkos, the investment bank, to handle the listing, which will be one of the largest on AIM for several years.

Institutional investors who have been briefed on RM2's plans said the company was looking to raise well over £100m, on top of a pre-fundraising valuation of approximately £250m.

The business is run by John Walsh, formerly a senior banker at Royal Bank of Scotland (LSE: RBS.L - news) , and is understood to have attracted the attention of prominent investors because of its proprietary technology and ability to control wastage in the supply chain through the use of sophisticated tracking software.

RM2's eye-catching board line-up also includes Ian Molson, a member of the North American brewing dynasty, who has been appointed as the company's chairman; and Amaury de Seze, a director of Carrefour (Paris: FR0000120172 - news) , the French retailer, who will join Sir Stuart and Mr Walsh as a non-executive director.

Sir Stuart is also expected to head a board-level sustainability committee aimed at identifying opportunities to reduce the environmental impact of RM2 and its competitors in the pallet industry.

Although it operates in a relatively unglamorous sector, RM2 and its existing investors believe there is substantial scope to grow the company rapidly because of the industry's massive fragmentation.

The biggest operator in the US had a market share of just 3.1% last year, according to material circulated among prospective investors, while the global market is forecast to grow at an annual rate of 4.5% to $4.5 billion (£2.8bn) by 2017.

RM2 has a high-quality blue-chip client base, with Heinz, Unilever (NYSE: UL - news) and United Biscuits among the multinationals which use its services.

An RM2 spokesman refused to comment on the flotation plans on Monday.

It is one of dozens of companies looking to raise capital by listing on the stock market amid more positive conditions in the economy and financial markets.