Bleeding Tens Of Millions, Toll Express Delivery Business Puts For Sale Sign Up
Toll Holdings is set to flog off their struggling Express business including depots and their parcel delivery service that is extensively used by retailers and distributors in the consumer electronics and appliance industry.
Japan Post the owner of Toll Holdings have confirmed to the Australian Financial Review via their Chairman John Mullens that they are selling off its troubled $3.5 billion Australian express business which is bleeding money to the extent that that they lost $101 million in the three months ending in June.
The for-Sale sign is going up immediately with JP Morgan and Nomura tipped to have been appointed to run a sale process.
The sale, which Japan Post believes will attract private equity firms and trade buyers, will raise cash from the disposal of 150 depots; two ships; 39 planes; 3500 prime movers, 900 trailers; and 6000 vans and motorbikes.
But Japan Post was not planning to sell the rest of Toll, leaving behind a $3.5 billion to $4.5 billion company with logistics and forwarding businesses, Mr Mullen said.
“There’s no indication that Japan Post wishes to sell off any of the rest of the business,” Mr Mullen said.
The AFR said that despite having the name “global express”, Toll’s express business operates only in Australia.
It was struggling before COVID-19, partially because of sloppy IT systems, but losses deepened after the pandemic reduced demand for its services – particularly from retailers as they shut stores – and it was hit by two cyber-attacks.