Toll to acquire UK forwarders, sells stake in Pacorini JV

AUSTRALIA's Toll Group has announced plans to acquire WT Sea Air Group and Genesis Forwarding Group in the UK.

"These two UK-headquartered acquisitions combine to provide significant scale to our Toll Global Forwarding (TGF) division in Europe. WT is expected to generate revenue this year of around A$170 million (US$148.8 million) and Genesis is expected to generate around A$80 million," said Toll Group's managing director Paul Little.

"Importantly, the two acquisitions we are announcing today place TGF in the top half dozen forwarders in the UK," he said. "TGF continues to grow its leadership position in Asian markets for key trade lanes into North America, Australia and the UK.

"WT is principally a UK inbound business from Asia specialising in the provision of global forwarding and value-added services such as bonded warehousing, pick-pack, garment re-hanging, vacuum packing and final mile delivery services. Its customer base is principally in the retail fashion segment.

"Genesis specialises in the provision of complex and mission critical international multi-modal freight predominantly in the defence, aerospace and oil and gas industries across Europe, the US, the Asia Pacific and the Middle East. These market segments are very attractive additions to the general TGF business.

"WT and Genesis together employ around 650 people in the UK, Ireland, Asia and North America. They have offices spread around the UK allowing TGF to offer more comprehensive services in the second largest forwarding market in the EU," said Mr Little.

The acquisition of WT Sea Air and Genesis are expected to generate over A$250 million in revenue and are both expected to be EPS accretive in year one based on the combined purchase price of A$150 million.

Toll also announced that it has concluded the sale of its 50 per cent interest in the Pacorini Toll joint venture to the Pacorini Group for a "small profit" on its investment in 2010. Incorporated in March 2004, Pacorini Toll was a 50:50 joint venture between the Pacorini Group of Italy and the Toll Group. The business is a provider of integrated logistics solutions and trade finance facilitation for the ferrous and non-ferrous metals industries.

"While the joint venture has been a successful business since its formation, it was decided that the ownership interest was not a core asset for Toll. Importantly, Toll will continue its relationship with Pacorini through the provision of warehousing and other logistics services," said Mr Little.
(Source:www.schednet.com)