Toll Acquires Logistic Distribution Systems

Toll Group has acquired Logistic Distribution Systems (LDS), a private international freight forwarding company in the United Arab Emirates (UAE). Headquartered in Dubai, LDS provides an integrated international sea and air freight forwarding service to its customers through its operational platform in Dubai and the Jebel Ali Free Zone. It also provides transport and logistics services to its freight forwarding customers within the UAE.

Currently generating revenues of approximately A$50.0 million (US$44.9 million), LDS serves the import, export and trans-shipment requirements of retail, trading, industrial and infrastructure customers throughout the UAE, with strong volumes in the key European and Asian trade lanes.

The Middle East and in particular the UAE is a key strategic market for Toll Global Forwarding (TGF). The capability and positioning of LDS in the trade lanes between Dubai and Europe / Asia Pacific attracted Toll to the venture and, when combined with Tolls existing operations, will help to secure a global trans-shipment hub for freight movements between Europe and Asia for TGF. Into the future, LDS will also provide TGF with a platform for growth in the broader UAE and Middle East region.

The acquisition will be funded from existing cash reserves and the transaction is expected to be Earnings Per Share (EPS) accretive in year one.

Toll Group, www.toll.com.au