ELG currently operates 12 freight forwarding branches across New Zealand, Australia and the US, and also provides value adding warehouse and transport services to its customers. ELG is principally focussed on serving the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with the majority of its revenues coming from trans-Tasman trade and Australian and New Zealand freight movements from Greater China.
The move follows the purchase in mid-October of Japan-based Footwork Express for A$95 million. Toll has held a minority stake in the Japanese express freight operator since April 2006. Footwork Express is one of JapanÃ¢â‚¬™s top ten domestic logistics companies, and generates revenue of around A$775 million a year.
But this is clearly not the end of the Melbourne-based companyÃ¢â‚¬™s acquisition strategy. The group has a Ã¢â‚¬Å“war chestÃ¢â‚¬Â of surplus cash and un-drawn bank facilities and is close to embarking on a number of takeovers, chief executive Paul Little said on Australian Broadcasting Corp.Ã¢â‚¬™s Inside Business programme.
Ã¢â‚¬Å“WeÃ¢â‚¬™re very confident that weÃ¢â‚¬™re well progressed on some M&A opportunities that we can probably bring to the market in the next six months,Ã¢â‚¬Â he said. Asked if that included deals in the US and Europe, Little replied, Ã¢â‚¬Å“Absolutely, yes.Ã¢â‚¬Â