Australia’s Toll Group today announced the acquisition of Footwork Express, a Japanese expressfreight operator and one of the country’s largest logistics companies to expand its express
business in Asia Pacific.Footwork Express employs more than 5,000 people, has revenue of approximately A$775 million(€475 million) and is one of the top ten domestic logistics providers in Japan.
Toll, which has held a minority stake in the Japanese company since April 2006, will pay A$95million (€58 million) for the remaining 64%. The deal, which requires regulatory approval, reflectsan enterprise value of $270 million, including the business’ existing debt of A$120 million.
“This acquisition is not only an important expansion of Toll’s express freight operation; itis also a significant investment by an Australian company in the Japanese freight and logisticsmarket. Japan has the largest economy in Asia and the second largest in the world and thisacquisition gives Toll a very significant presence in this key market,” said Toll Group’s ManagingDirector Paul Little.
“The control that we will gain from the acquisition of the remaining equity will allow us tomake the operational changes needed to secure the future success of Footwork within Japan and theregion,” he added.
Toll will send senior manager Pat Kearns, who led the transformation of Australian expressbusiness IPEC following its acquisition by Toll a decade ago, to run its business in Japan. “Whenwe acquired the IPEC express parcels business in Australia during 1998 it was underperforming andhad fallen well behind its competitors. Over the next few years we turned that business aroundlaying the groundwork for the business’ market leadership today,” Little commented.
“The Toll Group’s range of world class express service providers includes Toll IPEC, TollPriority, Toll
Express and NQX Freight System. These businesses are market leaders and the expertise theGroup has built over the years, combined with the knowledge of the Japanese market that comes fromour existing stake in Footwork, give us confidence in this acquisition,” he concluded.
