Australia's Toll Group acquires NZ's Express Logistics Group

INTEGRATED logistics provider, Toll Group, has acquired Express Logistics Group (ELG) for AUD50 million (US$46.44 million), to boost its position in the Australian and New Zealand freight forwarding market.

Express Logistics Group operates 12 freight forwarding branches across New Zealand, Australia and the US, and also provides value added warehouse and transport services to its customers.

The newly acquired company is chiefly focussed on serving the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with the majority of its revenues coming from trans-Tasman trade and Australian and New Zealand freight movements from Greater China, a Toll statement to the Australian Stock Exchange said.

"The acquisition of the Express Logistics Group is a great example of our growth strategy for the Toll Global Forwarding (TGF) business," said Toll Group's managing director, Paul Little. "ELG will add scale in Toll Global Forwarding's key trade lanes in Asia and allow its customers to leverage off Toll's very strong existing network in the region. These volume gains and synergy benefits are key to our freight forwarding growth strategy."

Mr Little estimates that the additional revenue from the ELG acquisition will be in the region of AUD125 million per annum. This he said "will cement TGF's position as a leading provider of freight forwarding services in the Australian and New Zealand market."

The Toll statement added that it will fund the acquisition from existing cash reserves.

(Source: www.Schednet.com)