Toll Acquires Summit Logistics
Published:02-February-2010
By Staff Reporter
Toll Group, a provider of integrated logistics services, has acquired Summit Logistics International (Summit), a US-based independent freight forwarding and supply chain business generating annual revenue of around AUD300m.
The business is headquartered in New Jersey, and provides integrated trans-Pacific logistics services to its customers through its operational platform in China, Hong Kong and the US. Summit also generates around 30% of its revenue providing supply chain solutions, including transport and logistics services to its freight forwarding customers within the US.
Paul Little, managing director of Toll Group, said: "We have been investigating US-based opportunities for some time and this is an important acquisition for the Group in the global forwarding market. 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.
"The capability and positioning of Summit in the Greater China-US trade lane is highly attractive to Toll. TGF is already a leader in the Asia-Australasia trade lane. This acquisition positions the division as a leading supplier of North Asia to North America logistics in the global forwarding sector. With the Summit acquisition, TGF's mix of international freight forwarding and domestic US capabilities will enable the business to offer a more extensive domestic deliver-tocustomer capability, from China to all major city destinations in the US."
Reportedly, Toll is paying approximately AUD80m for the Summit business. The acquisition is expected to be EPS accretive in year one.
