Further evidence is emerging that Platinum Equity is gunning hard for Toll’s Global Express unit, with Singapore-based executives from the private equity firm arriving in Australia to examine the business.
Platinum has hired advisory firm Gresham as part of its efforts to acquire what has been a struggling division.
Market observers say that given its top staff from Singapore are travelling to Australia, where they have to undertake quarantine, indicates that their interest in the business is serious.
Platinum sold the Australian Yellow and White Pages owner Sensis this month for a reported $250m to US-based Thryv in what has been described as a management buyout deal.
The private equity firm bought Sensis for about $454m around 2014 and has been winding it down over time while collecting its cashflow along the way. Given that investment was highly successful for the group, sources say it remains on the hunt for another acquisition in Australia.
Toll Holdings’ Global Express operation is right in its sweet spot given that it is focused on turnaround opportunities.
An outcome on the contest is nearing, with final bids due by the end of the month.
Platinum is up against Allegro Funds Management, advised by McGrath Nicol, in the second round of the competition.
JPMorgan and Nomura are working on the sales process.
The understanding is that both parties are bidding for the entire unit after groups only competing for parts of the operation were knocked out.
Platinum has been relatively quiet in this part of the market of late, with one of its most recent acquisitions being the Australian and New Zealand arm of office supplies business Staples in 2018.
The company has since been rebranded Winc.
The Global Express division consists of Express Parcels, Pallets, the Toll freight shipping operations to Tasmania, an intermodal operation and a New Zealand division.
Japan Post outlaid $6.5bn for Toll in 2015 before later booking a $4.8bn writedown.
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