Toll buys NZ freight forwarder for A$125m
Asia-focused integrated logistics provider Toll Group has acquired major New Zealand freight forwarder Express Logistics Group (ELG), giving it added scale and capacity in key trade lanes in Asia.
ELG currently operates 12 freight forwarding branches across New Zealand, Australia and the USA, and also provides value-adding warehouse and transport services to its customers. ELG mainly focuses on serving the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with the majority of its revenue coming from trans-Tasman trade, and Australian and New Zealand freight movements from the Greater China region.
'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 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.'
'The additional revenue from the ELG acquisition of approximately A$125 million (S$161 million) per annum will cement TGF's position as a leading provider of freight forwarding services in the Australian and New Zealand market,' said Mr Little.
The acquisition price of about A$50 million will be funded from Toll's existing cash reserves and is expected to be earnings-per-share accretive in the first year.
ELG currently operates 12 freight forwarding branches across New Zealand, Australia and the USA, and also provides value-adding warehouse and transport services to its customers. ELG mainly focuses on serving the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with the majority of its revenue coming from trans-Tasman trade, and Australian and New Zealand freight movements from the Greater China region.
'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 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.'
'The additional revenue from the ELG acquisition of approximately A$125 million (S$161 million) per annum will cement TGF's position as a leading provider of freight forwarding services in the Australian and New Zealand market,' said Mr Little.
The acquisition price of about A$50 million will be funded from Toll's existing cash reserves and is expected to be earnings-per-share accretive in the first year.