Toll buys Summit Logistics for $70m.
TOLL, the Australian logistics and shipping group, has secured a deal to acquire US logistics company Summit Logistics International at the cost of A$80m ($70.4m) in an effort to increase its exposure to the global forwarding market.
Toll is confident that the acquisition will be profitable in a year.
Toll Group"s managing director Paul Little said integrating Summit into Toll Global Forwarding improved Toll"s total supply chain capability in the US market.
Summit Logistics International has a business involvement in trans-Pacific logistics services between China, Hong Kong and the US. The company is a top five provider of ocean freight services on the transpacific route between China and North America.
The company recorded a revenue of about A$300 per year in which supply chain solutions including transport and logistics services to its freight forwarding customers in the US accounted for 30% of the company"s total revenue.
?With the acquisition, TGF"s mix of international freight forwarding and domestic US capabilities will enable the business to offer a more extensive domestic deliver-to-customer capability, from China to all major city destinations in the US,? Mr Little said.
The acquisition came after Toll spent A$95m to acquire 64% interest in Japanese express freight company Footwork Express on October 13.