SYDNEY-based private equity investor Allegro Funds has put Bass Strait shipping and logistics company Strait Link on the market.
Strait Link, the former Toll Shipping, was acquired as part of Allegro’s buyout of Toll Global Express – now Team Global Express – from Japan Post in September 2021, but held as a separate company. In April this year TGE sold its Tasmanian transport business into Strait Link Australia Holdings, leading to speculation at the time that Allegro was positioning the combined business for sale.
The Australian Financial Review yesterday reported Allegro has appointed UBS and boutique firm Stanton Road Partners to test the market.
The paper’s Street Talk column said that according to filings with the corporate regulator, Strait Link Australia Holdings recorded revenue of $310 million for the year ended 31 March, up from $252.8 million. Net profit was $8.7 million. The AFR says the business is expected to fetch a sale price of about $500 million.
Strait Link operates the twin ro-ros Tasmanian Achiever II and Victorian Reliance II between Melbourne’s Webb Dock and Burnie, six nights a week. In May the company signed a non-binding Heads of Agreement with TasPorts, giving Strait Link use of the Burnie terminal for up to 30 years.
The AFR says the April TGE/SLAH transaction realised Strait Link’s ambition to become an end-to-end shipping and logistics operation, comprising the two vessels with around 20 years of remaining life, landside assets of 164 prime movers, 570 trailers, 4500 containers and 11 depots across Tasmania and Victoria, plus the terminal leases.
A sale of Toll Shipping/Strait Link has been mooted for many years. Suggested possible buyers include ANL/CMA CGM, Qube and DP World.