The Toll Group, the Australian-based freight logistics company, today announced the acquisition ofthree Asian-based international express businesses to continue its expansion in the Asia-Pacific
region.Toll has acquired the Asian operations of Deltec in Hong Kong, Singapore and Australia tocomplement its existing air freight operations in Australia and New Zealand. The Deltec businesshas multiple product offerings including international express, local point to point courier andmail (international and domestic).
Toll has also acquired two additional small businesses in Hong Kong – Kwikmail and Skynet(Hong Kong). The three acquisitions are expected to be EPS positive from the first year.
The businesses will be integrated into Toll Priority, the group’s express parcel and documentdivision. Toll Priority already expanded last year with the acquisitions of SkyNet Australia andNew Zealand, and is currently developing its Asian-based express courier business throughsubsidiaries and partners. Toll Priority is a member of the Global Distribution Alliance (GDA) ofindependent express companies.
“As we’ve been saying for some time, our customers increasingly expect Toll to provide themwith international solutions to their logistics needs,” said Paul Little, Managing Director of theToll Group.
“With annual consolidated revenue of around A$12 million, these acquisitions, in thestrategically important hubs of Hong Kong and Singapore, provide a key platform in Toll’s ongoinggrowth and development in the region. Hong Kong is the busiest cargo airport in the world andSingapore is the eighth busiest and the busiest in South East Asia so boosting Toll’s presence inthese markets is an important advantage for our customers,” Little added.
The group is planning to restructure its organisation into customer-focused business areas inthe 2009/2010 financial year instead of the present geographic areas (Australia/New Zealand, Asia).The new divisions will include global forwarding, global express (parcels up to 30kg, expressfreight), domestic freight and contract logistics.
The Toll Group generated revenue in excess of A$5.6 billion for the year ending June 2008. Inthe half-year ending December 31, 2008, the company increased operating profits (EBIT), beforecharges and write-downs, by 18% to A$266.4 million while revenues rose 30% to A$3.5 billion,largely thanks to acquisitions.
