Toll Group has this week successfully divested its freight and freight forwarding arm, Toll Global Express, to private equity firm Allegro Funds.
First announced in April this year, the finalised deal also marks the start of Christine Holgate’s stint as CEO of the cut-throat parcels division.
The former Australia Post boss will now go head-to-head with her former employer now led by one-time Woolworths chief supply chains officer Paul Graham, who was also expected to start as CEO this month.
A media statement this week said a key component of the transaction was the $500 million funding package Allegro secured to transform the business and separate it from Toll Holdings.
Toll Global Express has a suite of high quality assets and is either number one or two in its core markets, which includes express parcel, freight delivery and domestic forwarding services in Australia, and transport and contract logistics services in New Zealand.
The company serves more than 36,000 customers, employs over 8000 people and generates more than A$3b in annual revenue.
The surge in online transactions since the emergence of Covid-19 points to the potential of Toll Global Express, the statement continued.
Allegro expects Holgate will “lead the transformation of the business, drawing on her deep logistics and executive experience, as well as leveraging Allegro’s turnaround processes and expertise.
“This includes working very closely with a number of Allegro’s operating partners who are playing critical roles in transition, separation and interim executive and governance roles partnering with Christine and her management team.
“In recognition of the critical role all stakeholders will play in the future success of the company, Christine has committed to a 100-day program of meetings with customers, business partners and employees.”