Toll takes control of Patrick Corp.

Australia’s leading freight logistics group, Toll Holdings, has announced that it has takencontrol of port logistics group Patrick Corporation (Patrick) and has declared its offer for

Toll said it has begun the process of formally taking control of Patrick and airline Virgin Blueas previously agreed when the Patrick board announced its unanimous recommendation thatshareholders accept the Toll offer. Under the agreement, the Patrick Board is resigning in favourof Toll nominees, including Toll’s managing director Paul Little.

Little said Toll was delighted that it had won control of Patrick and could now move to optimisevalue from the Toll, Patrick, SembLog group. “This merger is a winning combination for shareholdersand customers, with forecast revenues for the merged group of A$8 billion and total assets of A$11billion,” Mr Little said. “We will act swiftly to achieve Toll’s long-held ambition to create aleading, global scale logistics business focusing on Australia and Asia, with operations in 17countries.

Integration teams will now review Patrick’s operations, name a new management structure for thePatrick business, and appoint an asset sales team to handle the divestments as agreed between Tolland the Australian Competition and Consumer Commission (ACCC). “It will be business as usual forboth Toll and Patrick until our review is completed which we expect will take a number of months,”Mr Little said. Mr Little said Toll had held discussions with key Patrick operational executivesand did not envisage any significant changes to Patrick’s management’s currentresponsibilities.

Toll expects to announce an interim CEO for Pacific National, the Australian freight railway, totake over day-to-day operational control and oversee the transition period and the sale of 50% ofthe business, as agreed between Toll and the ACCC. Toll said it will commence a business review ofVirgin before taking any decision about its intentions.