Logistics company Toll Holdings Ltd
(ASX:TOL) has acquired Qantas Airways Ltd
(ASX:QAN) Asia Pacific air freight business DPEX Group.
Managing director Paul Little says DPEX will support Toll’s ongoing growth and development in the Asia Pacific region.
The company says 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.
Toll says the acquisition will provide over $30 million in revenue and is expected to be earnings per share accretive in the first year.
In an update on how the company is trading, Toll says that while operating profit before interest and tax for the current half year is expected to be up 5 to 10% compared to last year, trading conditions have recently softened across some parts of the business in Australia and continue to be challenging in New Zealand.
Toll says lower volumes in Australia are having an impact on the non-express parts of the business in particular.
However, the company says offsetting the lower volumes in Australia and New Zealand is stronger trading performances from the Toll Global Logistics and Toll Global Resources businesses.
Toll Holdings pulled itself out of the red to post a profit of $270.3 million in fiscal 2009.
