Freight company Toll Holdings Ltd
(ASX:TOL) has acquired private international freight forwarding company Logistics Distribution Systems in the United Arab Emirates.
Managing director Paul Little says the Middle East and in particular the United Arab Emirates is a key strategic market for the company.
Mr Little says the capability and positioning of Logistics Distribution Systems as a quality freight forwarder in the trade lanes between Dubai and Europe/Asia Pacific is attractive to Toll and when combined with its existing operations helps to secure a global trans-shipment hub for freight movements between Europe and Asia for the company.
Toll says Logistics Distribution Systems generates revenues of approximately $50 million.
Toll says it will fund the acquisition using existing cash reserves and the transaction is expected to be earnings per share accretive in year one.
Toll Holdings pulled itself out of the red in 2009 to post a profit of $270.3 million.
