Toll makes another forwarding acquisition
Australia-based Toll Group on Friday said it has paid $46 million to acquire New Zealand freight forwarder Express Logistics Group, adding to a handful of acquisitions its forwarding unit has made this year.
ELG operates 12 freight forwarding branches across New Zealand, Australia and the United States, and also provides warehouse and transport services. ELG is principally focused on the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with most of its revenue coming from trans-Tasman trade and Australian and New Zealand freight movements from Greater China, Toll said.
'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,' said Toll Group Managing Director Paul Little. 'These volume gains and synergy benefits are key to our freight forwarding growth strategy.'
Toll said the acquisition would be funded from existing cash reserves, the company said in a note to the Australian Stock Exchange.