Australian express and logistics group Toll has sold its stake in a Chinese property developmentgroup and bought McLaughlin Freightlines, a specialist transport provider to the Australian poultry
industry.Toll said McLaughlin Freightlines was a family-run business in the rapidly expanding poultrytransport sector, servicing Baiada, Turi Foods, McKeys and others in the sector.
Group managing director Paul Little said: “MFL is a highly strategic acquisition, addingstrength to our existing Toll Refrigerated, Toll SPD and Toll QRX rail businesses.”
The Group paid approximately A$25 million for MFL, which generates annual revenues of aroundA$20 million, and expects the acquisition to be ‘earnings-per-share-positive’ in its firstyear.
Little said Toll took the decision to sell its minority stake in Chinese property developerShenzhen Chiwan Petroleum Supply Base (SCP) because that business had been moving
away from developing oil and gas supply base operations and into industrial property developmentand leasing.
“Our effective interest of 16.6% in SCP is a non-core asset for Toll,” said Little. “Thetransaction will generate cash proceeds of around A$50 million which will further strengthen theGroup’s balance sheet, while having an immaterial impact on current year profit result.”
