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Toll Buys Express Logistics Group

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 23 NZPA - Another very good New Zealand business is in the hands of Australians, said Mainfreight managing director Don Braid in reaction to Toll Holdings Group Ltd's latest acquisition in New Zealand.

Toll is buying Express Logistics Group for $A50 million ($NZ62 million). The business has turnover of $NZ155m.

The Melbourne-based company has a substantial transport and logistics business in New Zealand. It kept the TranzLink business belonging Tranz Rail when it sold the rail business back to the Government and has added to it with a number of acquisitions.

"It is a very good New Zealand business and it is such a pity the ownership has left New Zealand," Mr Braid said.

Express Logistics has a base at Auckland Airport and its major customers are believed to include Ezibuy, Pumpkin Patch and Bendon. It is owned by private equity interests and the Thomas family, according to Company Office records.

It operates 12 freight forwarding branches across New Zealand, Australia and the US, and provides warehouse and transport services to its customers.

The acquisition will be funded from existing cash reserves and is expected to be earnings per share accretive in year one. Toll has been expanding in Asia across the range of its businesses.

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