Toll buys Oz poultry transport, sells Shenzhen real estate firm

AUSTRALIA's Toll Group, a major Asia Pacific logistics provider, has announced that it has acquired the business assets of McLaughlin Freightlines (MFL), a specialist transport provider for Australian poultry.

Toll has also divested the majority of its 16.6 per cent interest in Shenzhen Chiwan Petroleum Supply Base (SCP).

"Toll took the decision to sell down our minority stake in SCP as that business has been moving away from developing oil and gas supply base operations and into industrial property development and leasing," said Toll managing director Paul Little.

McLaughlin Freightlines is a family-run business in the rapidly expanding poultry transport sector. It services Baiada, Turi Foods and McKeys among others.

"MFL is a highly strategic acquisition adding strength to our existing Toll Refrigerated, Toll SPD and Toll QRX rail businesses," Mr Little said in a company filing with the Australian Stock Exchange.

MFL generates annual revenue of A$20 million (US$20.07 million). The Toll group paid an enterprise value of A$25 million to buy up MFL and said it expects the acquisition to be earnings per share positive in its first year.

"Our effective interest of 16.6 per cent in SCP is a non-core asset for Toll. The transaction will generate cash proceeds of around A$50 million, which will further strengthen the group's balance sheet while having an immaterial impact on current year profit result," Mr Little said.
(Source:www.schednet.com)