Toll Holdings Ltd acquires Summit Logistics for $A80m
02 February 2010
Logistics provider Toll Holdings Ltd has acquired United States freight forwarder Summit Logistics for about $A80 million.
Summit, which
provides ocean freight services on the trans-Pacific route between China and
North America, generates annual revenue of around $A300 million, Toll said in a
statement on Tuesday.
Summit also
generates about 30 per cent of its revenue from the provision of transport and
logistics services to its freight-forwarding customers within the United
States.
"We have
been investigating US-based opportunities for some time, and this is an
important acquisition for the group in the global forwarding market," Toll
managing director Paul Little said.
"The
development of significant scale in the trans-Pacific trade lane is a key
element of delivering price-competitive services to US-based customers.
"Importantly,
integrating Summit into Toll Global Forwarding also improves Toll's total
supply chain capability in the US market."
The acquisition
of Summit is expected to add to Toll's earnings per share in the first year of
ownership by Toll.
Toll shares were
10 cents lower at $8.48 on Tuesday.
