The Toll Group will acquire the DPEX Group from Qantas. DPEX is one of the largest independent express businesses in Asia. The sale excludes the airline’s stake in the DPEX Australian operation.
The Toll Group generates revenue in excess of A$6.5 billion and employs over 35,000 people in 55 countries.
“The acquisition of the DPEX business is a great example of our growth strategy for the Toll Global Express (TGX) Division,” said Toll Group’s managing director, Paul Little.
“DPEX will support Toll’s ongoing growth and development in the region. It is an important addition to TGX’s Asia Pacific operations that acquired Deltec, Skynet and Kwikmail businesses in the middle of last year and will provide additional scale and coverage across a network of 19 countries in Asia,” said Mr Little.
The acquisition of DPEX is highly complementary to the growth of TGX’s Toll Priority international express network in the Asia Pacific region. The expansion of the Toll Priority network throughout Asia is a key component of the Toll Global Express strategy. The business is a natural fit in terms of strategy, focus, capability, network and services. Toll Priority and DPEX will leverage each other’s capabilities and customers to further accelerate growth both regionally and globally within this key international express freight market.
“As a result of enhanced volumes, TGX will now offer customers an improved service offering and will be more competitive. These factors are key to our growth strategy in this market segment,” concluded Mr Little.
The DPEX acquisition will provide over A$30 million in revenue and is expected to be EPS accretive in year one.
Qantas said the sale is in line with Qantas Group’s ongoing strategy of focusing on core business areas.
Completion of the transaction is subject to approval by China competition authorities as a result of both Qantas and Toll having significant unrelated existing interests in China.
Source: T and L News