New era for Toll

Toll Group has officially commenced operations under the watchful eye of new parent company Japan Post, with both companies marking the milestone with a press conference at a Toll Group distribution centre in Melbourne.

The President and CEO of Japan Post, Mr Toru Takahashi, and the Managing Director of Toll Group, Mr Brian Kruger, addressed media in the presence of other senior executives from both firms, as the companies set their collective sights on becoming one of the world's true global logistics heavyweights.

Japan Post launched its acquisition for Toll back in February, offering Toll shareholders $9.04 cents per share – an attractive 49 per cent premium on the group's closing price at the time. After gaining the necessary governmental approvals and the overwhelming support of 99.7 per cent of Toll shareholders, the deal was done, with Toll Group now part of a logistics leviathan said to generate combined annual revenue of $US33b ($A43.1b). Toll Group itself reportedly generated some $A8.8b in revenue last year.

Mr Takahashi welcomed the new era for Japan Post and Toll Group, while underlining the common goals held by each firm.

"From here on, with Toll Group, we will venture into the long, bright journey of the international logistics industry by leveraging on each other's strengths," he said.

"Japan Post and Toll share a common global strategy: to become a top-tier global logistics player."

Mr Takahashi also underlined the sense of respect each company held for the other, and emphasised that the acquisition would not reshape the face of Australia's largest logistics company.

"Although Toll is now a wholly owned subsidiary of Japan Post, we regard Toll as a great partner and teacher in the field of global logistics," he said.

"Japan Post will not control Toll as a subsidiary but will respect Toll as a partner."

Mr Takahashi announced the formation of a new board that will guide Toll under its new owners, comprising senior Japan Post executives and former Toll board members, Ray Horsburgh and Nicola Wakefield Evans.

Mr Horsburgh will serve as Chairman of the new board, while Mr Kruger will continue as Managing Director.

Ten Japan Post staff will soon be seconded to Toll operations in Australia to provide additional support. Former long-term Toll boss Paul Little will retain his position sitting on the Board of Toll's Government Business Group in Singapore but will have no other involvement in the new-look firm, said Mr Kruger.

With Toll under its corporate umbrella, Japan Post will now seek to expand its presence in the global logistics market, initially in Asia and then further afield, while with its parent's assistance Toll will seek to ramp up its operations in the increasingly lucrative parcel delivery sector – an area booming in line with the growth of online retailing.

Mr Kruger said the new era would unlock numerous pathways to future growth.

"I'm sure that the combination of Japan Post and Toll will create many, many opportunities for us both here in Australia and overseas," he said.

"The strength of Toll's existing brand has also been recognised by Japan Post's desire to retain the Toll name and to support us to help them grow."

Mr Kruger said the acquisition in itself would have little if any impact on Toll's current staffing.

"Mr Takahashi has said previously and we've said to our employees that we don't expect any real material change to our operational employees," he said.

After admitting it's been something of "whirlwind ride" since Japan Post first announced its intentions, Mr Kruger thanked Toll Group's staff past and present for their efforts.

"I'd like to take this opportunity today to thank all of Toll's employees and importantly all of its past employees," he said.

"It's really their efforts that have got us to this point today; it's their efforts that have caused Japan Post to recognise that they can partner with us to help them achieve their goals."

When asked how Toll would juggle its plans for future overseas growth with the management of its own domestic business, Mr Kruger said the group's record spoke for itself.

"Japan Post understands that our domestic Australian business is a fantastic business, and certainly to date and I'm sure in the future it will encourage us to make sure that we don't lose sight of the importance of that domestic business," he said.

"Forty per cent of our employees are outside Australia across a range of countries. We have a very significant global forwarding operation already; we have a very competitive contract logistics business in a dozen-plus countries in Asia already, so really for us it's about building on that footprint.

"We'll be looking at a range of growth opportunities. They will all bring challenges, but with Japan Post's assistance I'm sure we'll be able to cope with managing that growth."

After the press conference, Mr Takahashi, Mr Kruger and a number of other senior executives took a short tour of Toll Group's distribution centre in Altona, with the company chiefs chatting to Toll Group employees about their duties.

It's not every day warehousing staff come face to face with the lofty ranks of senior management, but the brief encounter did serve as a poignant snapshot of a gigantic new global logistics family that now has nearly a quarter of a million members.