LEADING ocean freight provider, Toll Group has announced its acquisition of US freight forwarding and supply chain business, Summit Logistics International.
According to Toll, Summit generates an annual revenue of $300 million with 30% of it is generated through providing extensive supply chain solutions including transport and logistics services to its freight forwarding customers within the US.
The New Jersey-based company is a top 5 provider of ocean freight services on one of the world’s key trade lanes - the trans-pacific route between Greater China and North America.
“We have been investigating US-based opportunities for some time and this is an important acquisition for the Group in the global forwarding market,” Toll Group’s managing director, Paul Little says.
“The development of significant scale in the trans-Pacific trade lane is a key element of delivering price competitive services to US based customers. Importantly, integrating Summit into Toll Global Forwarding (TGF) also improves Toll’s total supply chain capability in the US market.”
Toll Group says the acquisition will further expand the company’s business to North Asia and North America.
“With the Summit acquisition, TGF’s mix of international freight forwarding and domestic US capabilities will enable the business to offer a more extensive domestic deliver-to customer capability, from China to all major city destinations in the US,” Little says.
Toll is paying approximately $80 million for the Summit business.
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