Toll Group to sell Global Express business
Toll Group announced it had entered into an agreement for the sale of its Global Express business to Australian private equity fund manager Allegro Funds.
Allegro Funds is Australasia’s most-awarded and largest transformation and turnaround private equity firm, applying capital, expertise and a distinctly hands-on approach to invest in businesses and reposition them for sustained long term growth. Over the past 20 years, Allegro has demonstrated a strong track record of partnering with management teams and key stakeholders to build better businesses and create enduring value.
The Global Express business provides express parcel, freight delivery and domestic forwarding services in Australia, and transport and contract logistics services in New Zealand.
Toll Chairman, John Mullen, said the agreement is consistent with Toll’s strategy to focus on its Asia-Pacific logistics strengths and fits with Allegro’s investment thesis of investing in Australian and New Zealand companies to realise their potential.
“We have spent the last three years transforming and strengthening Global Express and today the business is a market leader. I am confident that under Allegro’s ownership, Global Express will have the support and focus it needs to reach its full potential.
“The divestment is consistent with Toll’s strategy to focus on being a pre-eminent Asia-Pacific logistics provider through its core businesses in contract logistics and freight forwarding.”
Adrian Loader, one of Allegro’s founding partners, said the team looks forward to working with management and all stakeholders to drive the business forward.
“We are excited about the future potential for Global Express and are committing $500 million in funding to continue the business’ transformation and support its growth over the long term,” said Mr Loader.
Toll Group and Allegro are committed to ensuring that the transition is seamless for customers and that service standards are upheld throughout the transition.
Under the terms of the sale, Allegro will operate the Global Express business under the Toll brand for a two-year transitional period.
Toll’s Global Logistics and Global Forwarding businesses are not impacted by the announcement.
The sale is subject to regulatory approvals and other customary closing conditions with the transaction targeted for completion by 30 June 2021.
J.P. Morgan and Nomura acted as financial advisers. Ashurst acted as legal and tax adviser to Toll. Deloitte acted as accounting adviser.