Australia’s Toll Group has sold another under-performing business as part of its ongoingstrategic review.
The express and logistics company has sold the Australian interstate linehaul and warehousingoperations of its Toll Refrigerated business to Automotive Holdings Group Ltd, owners of RandRefrigerated Logistics, for $6.5 million. These operations, with some 100 staff, have revenues ofaround $75 million and made a small operating loss in the financial year to 30 June 2012.
“Due to the challenging market conditions and margin pressure faced by this business, weconcluded that, in this case, divestment was the best option,” said Managing Director Brian Kruger.“It is encouraging that we have been able to complete the review and conclude a positive result forboth parties in such a short period of time.”
Toll will retain its other refrigerated transport and warehousing operations which are currentlyprovided by other businesses within the group.
The Australian company pointed out that it has been conducting strategic reviews of some of itsbusinesses since May. Kruger, who took over from long-serving Paul Little at the start of the year,said in February that the group would sell off underperforming non-core businesses after years ofexpansion through acquisitions in Australia, Asia and other parts of the world.
In May, it announced the sale of its finished vehicle distribution business along with awrite-down in the value of loss-making Japanese subsidiary Footwork Express, and said it isconducting “a full strategic review of its options for this business”.
Toll Group, whose operating profits dropped 2.2% in the half-year ending December 31, 2011,warned in May that profits would drop in the full year to June 30, 2012.
