Toll eyes US business

TOLL GROUP           ACQUISITION          LOGISTICS

Australia - Toll Group's plan to create a global business has gotten a leg up with the company's acquisition of US freight forwarding business Summit Logistics International.

Summit generates annual revenue of around A$300 million and provides ocean freight services on the trans-pacific route between Greater china and North America. Summit's supply chain solutions including transport and logistics services to its freight forwarding customers in the US accounts for around 30% of its revenue, Toll said.

"We have been investing US-based opportunities for some time and this is an important acquisition for the group in the global forwarding market," said Toll Group's MD, Paul Little.

"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 (TGF) also improves Toll's total supply chain capability in the US market."

Little believes the A$80 million acquisition will bolster TGF's mix of international freight forwarding and domestic US capabilities, enabling the company to offer a more extensive domestic deliver-to-customer capability from China to all major city destinations in the US.

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