Melbourne-based logistics provider Toll Group announced it has agreed to sell its express business to Australian private equity firm Allegro Funds for A$500 million (US$386 million), according to a press release.

The Japan Post subsidiary said the move is consistent with its strategy to focus on its logistics strengths in Asia Pacific, particularly in contract logistics and freight forwarding.

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“We have spent the last three years transforming and strengthening Global Express and today the business is a market leader. I am confident that under Allegro’s ownership, Global Express will have the support and focus it needs to reach its full potential,” said Toll Chairman, John Mullen.

“The divestment is consistent with Toll’s strategy to focus on being a pre-eminent Asia-Pacific logistics provider through its core businesses in contract logistics and freight forwarding,” he added. Toll said its global logistics and forwarding units are not impacted by the sale announcement.

Under the terms of the sale, Allegro will operate the express business under the Toll brand for a two-year transition period. The express unit provides express parcel, freight delivery and domestic forwarding services in Australia, as well as transport and contract logistics services in New Zealand.

The sale is subject to regulatory approvals and both companies are looking to complete the transaction by 30 June 2021.