Toll Group has announced the sale of a subsidiary of Toll Express Japan (TXJ), KSU Logistics, to logistics and construction company Konoike Corporation for JP$1.8 billion (A$19.5 million).
The 3PL logistics arm of TXJ's KSU entity, KSU Logistics is involved in a range of sectors including domestic pick-up and delivery, and air and rail logistics. Toll will retain the core express freight arm of its KSU entity.
Toll Group Managing Director Brian Kruger 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.
The sale will free up cash through the reduction of capital employed in Toll Express Japan and 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.