The Toll Group has acquired SAT Albatros (SAT), a Dubai-based sea-air forwarder.
“The acquisition of SAT will further cement Toll’s strategic position in the Middle East and in the Asia to Europe trade lane”, said Toll Group’s managing director Paul Little AO.
“With a strong customer base and as the market leader in this service sector, SAT will support our intention to further develop in this market.
“Building our business with a niche sea-air provider gives us further scope to offer our customers the opportunity to match speed to market with a cost-effective service. For customers who want to transport goods quickly but keep costs down, this integrated option can offer significant cost savings over pure air freight.”
“The integration of SAT will allow us to secure a blue-chip well-established customer base principally consisting of European fashion apparel, electronics, and consumer goods conglomerates sourcing products from Asia.
“SAT will form part of Toll’s rapidly-developing global forwarding division, adding further capacity to the group in the Middle East, following the 2009 acquisition of Dubai-based Logistic Distribution System (LDS).
“SAT has strong links in Europe and in particular Germany, which itself accounts for a majority of volume at destination,” Mr Little said.
Providing combined sea-air logistics from Asia to Europe with its weekly scheduled services, SAT offers an alternative to pure air or sea freight on this route.
SAT reported revenue in excess of US$40 million in 2010. The company expects the acquisition to be earnings per share positive in its first year.
Source: T and L News