Toll announces sale of Global Express business
MELBOURNE : Toll Group has entered into a formal agreement with Allegro Funds for the sale of the Global Express business, marking a significant chapter in the proud history of one of the world’s leading logistics solutions providers.
Allegro Funds is a successful Australian private equity company with a reputation for building great businesses, helping them to grow and become more profitable.
Day-to-day operations will be unchanged in the meantime, with customers continuing to work with their existing Toll teams throughout the separation of Global Express from Toll Group.
Completion of the sale is subject to regulatory approvals and other customary closing conditions, with completion targeted for 30 June 2021.
Toll Group Chairman, John Mullen, said the sale marked an “exciting opportunity to build a profitable, sustainable company for the long term” by re-orienting around its key strengths and competitive advantage.”
“As an international business with a strong Australian heritage and significant Asian operations, the sale affords us the opportunity to invest in growing our operations across the Asia region while continuing to build on our strong competitive position in Australia – where it all began.”
Toll Group Managing Director, Thomas Knudsen, said the team would seek to create an even more compelling offering for customers by drawing on the “strength, scale and expertise we’ve built over 125 years through new and innovative solutions that help us grow with our customers in what is a very different world.”
“In undertaking the sale, we’ll retain the scale and expertise to manage complex supply chains across diverse markets in our key markets in Asia-Pacific.”
Mr Knudsen said that the changing operating environment – including shifting supply chain dynamics, the rise of eCommerce, and the continued rise of Asia as an economic powerhouse – presented exciting opportunities for Toll’s customers and employees.
“We’ll draw on our core capabilities, global reach and sector expertise – as well as our trusted relationships with customers, governments and the broader supply chain industry – to forge a new and exciting future for the business”, he said.
President of the Global Express division, Alan Beacham, said the sale of Global Express will “further build upon the business’ positive trajectory to delivering operational improvements and serving its customers.”
“The sale is testament to how far we’ve come as a business, and it marks a new and exciting chapter for our people and for the customers we serve.”
Further details relating to Toll’s proposed structure and operating model going forward will be provided on completion of the sale process and as part of the transition to new operating entity.
Source : Toll