The Toll Group is selling its subsidiary of Toll Express Japan (TXJ), KSU Logistics, to logistics and construction company Konoike Corporation for JP¥1.8 billion (A$19.5 million).
KSU Logistics is the 3PL logistics arm of TXJ’s KSU entity and is involved in a range of sectors including domestic pick-up and delivery, air and rail logistics.
KSU Logistics has annual revenues of approximately JP¥6.6b billion (A$74 million) and the sale is expected, subject to exchange rate movements, to generate a one-off gain for Toll of approximately A$4 million.
Toll will retain the core express freight arm of its KSU entity.
Toll Group Managing Director, Brian Kruger (pictured), said the sale was consistent with Toll’s strategy of streamlining the TXJ asset base and facilitating operational improvements within TXJ’s express freight operations.
“Last year, following a review of Toll Express Japan, we announced that a full sale of the business was unlikely in the near term, but that other options to improve the structure and performance of the business would continue to be explored,” Mr Kruger said.
“Since that time, Toll Express Japan has made good progress in improving its operational performance, and we look forward to seeing this continue.
“The sale will free up cash through the reduction of capital employed in Toll Express Japan and it will allow management to focus human and financial resources on improving the core express business.”
Around 600 employees are expected to transfer to Konoike Corporation, which also includes three freehold and 28 lease properties.
The sale is expected to be completed on May 1.
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