Toll’s Global Express Worth $3.2bn, Says Japan Post Bankers As They Flog It
Leaked papers have described Toll Group’s Global Express unit as a $3.2 billion business, as owner Japan Post seeks to offload it.
In a sales pitch from Japan Post bankers JPMorgan and Nomura, reported in the Australian Financial Review, Global Express is billed as Australia and New Zealand’s leading provider of time-sensitive freight, as well as domestic full- and part-load freight forwarding services.
According to the bankers, Global Express, which has more than 8000 employees, accounted for 41 per cent of Toll Group’s revenue in the 2020 financial year. They described Toll as the biggest transport and logistics company in Australia, with the widest reach and speed.
Global Express itself was described as the leader in business-to-business expressed parcels, as well as palletised and intermodal shipping, and shipping to Tasmania. It is number two in New Zealand, and occupies a top-five position in the courier sector.
Japan Post announced its intention to sell off Global Express last week, after the division lost $101 million in the fourth quarter of FY20. The mail carrier acquired Toll Group in 2015 for $6.5 billion, a move widely regarded in financial circles as a mistake.