Toll Group has announced the sale of the Australian interstate linehaul and warehousing operations of its Toll Refrigerated business to Automotive Holdings Group Ltd, owners of Rand Refrigerated Logistics, for $6.5 million.
Toll Refrigerated’s interstate linehaul and consolidated warehousing operations have revenues of around $75 million and made a small operating loss in the financial year to 30 June 2012.
As was previously announced by Toll Group Managing Director Brian Kruger, Toll has been conducting strategic reviews of some of its businesses since May.
“Due to the challenging market conditions and margin pressure faced by this business, we concluded that, in this case, divestment was the best option,” Mr Kruger said.
“It is encouraging that we have been able to complete the review and conclude a positive result for both parties in such a short period of time.”
Toll will retain its other refrigerated transport and warehousing operations which are currently provided by other businesses within the Group.
Approximately 100 Toll staff will transfer to Automotive Holdings Group as part of the sale.