Toll Group Acquires Logistics Provider in Japan

The Toll Group, a provider of integrated logistics, has announced the acquisition pending regulatory approval of Footwork Express, a Japanese express freight operator.

“This acquisition is not only an important expansion of Toll’s express freight operation; it is also a significant investment by an Australian company in the Japanese freight and logistics market.” said the group’s MD, Paul Little.

“The control that we will gain from the acquisition of the remaining equity will allow us to make the operational changes needed to secure the future success of Footwork within Japan and the region. We anticipate the acquisition will be Earnings Per Share (EPS) positive in year one. The acquisition will be funded out of Toll’s existing cash reserves,” concluded Little.

The acquisition price of A$95 million (US$86 million) for the remaining 64 percent interest reflects an enterprise value of A$270 million, including the business’ existing debt of A$120 million.

As a result of recent changes to accounting standards, Toll will be required to write down the carrying value of its existing 36 per cent holding to a fair value based on the 64 per cent that is being acquired. This will result in a non-cash charge of up to A$30 million in the 2009/10 year.

Toll, www.toll.com.au