[100712.EN.SEA] Toll Refrigerated Business Is To Be Sold To Automotive Holdings

AUSTRALIA's Toll Group is selling the domestic interstate, line haul and warehousing operations of its Toll Refrigerated business to Automotive Holdings Group Ltd, the owners of Rand Refrigerated Logistics, for A$6.5 million (US$6.68 million).

The group said in a statement Toll Refrigerated's operations generate revenues of A$75 million, however, its domestic interstate, line haul and warehousing operations made a small operating loss in the financial year to June 30.

The sale of the business follows on from the Toll Group's earlier announcement that it has been conducting strategic reviews of some of its businesses since May, according to managing director Brian Kruger.

"Due to the challenging market conditions and margin pressure faced by this business, we concluded that, in this case, divestment was the best option," Mr Kruger said.

"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," he added.

One hundred Toll staff will transfer to Automotive Holdings Group as part of the sale.

Toll will retain its other refrigerated transport and warehousing operations which are currently provided by other businesses within the group.

Source : HKSG.