The Toll Group said Thursday it has sold the Australian interstate linehaul and warehousing operations of its Toll Refrigerated business to Automotive Holdings Group Ltd., owners of Rand Refrigerated Logistics, for $6.5 million.
Toll Refrigerated had revenues of about $75 million and made a small operating loss in the financial year to June 30, 2012. The Toll Group is the Australia-based parent of a wide network of logistics companies. The company has been conducting strategic reviews of some of its businesses since May.
“Due to the challenging market conditions and margin pressure faced by this business, we concluded that, in this case, divestment was the best option,” said Brian Kruger, Toll Group managing director. “It is encouraging that we have been able to complete the review and conclude a positive result for both parties in such a short period of time.”
Toll said it will retain its other refrigerated transport and warehousing operations currently provided by other businesses within the group.
About 100 Toll staff will transfer to Automotive Holdings Group as part of the sale. - Eric Johnson