CHRISTINE Holgate will lead the transformation strategy for Toll Global Express after Australasian turnaround private equity firm Allegro Funds completes its acquisition of the company.
After completion, Toll Global Express will cease being a division of Toll Holdings.
Last month Allegro Funds announced it would acquire Toll Global Express from Japan Post. Allegro committed funding of $500 million to support the company’s long-term growth.
Toll Global Express is a diversified transportation and logistics business with a network across Australia and New Zealand. The group provides express parcel, freight delivery and domestic forwarding services in Australia, and transport and contract logistics services in New Zealand. It employs more than 8000 people in ANZ and generates more than $3 billion in revenue.
Former chief executive of Australia Post, Ms Holgate said, “I am honoured to be joining the Global Express team. I believe strongly in the potential of the business and have great respect for both the employees of Global Express and Allegro.
“In recent times Global Express has faced challenges and there is lots of hard work ahead of us. However, the combination of new funding, a focused local leadership team, a strong position in growing markets and the turnaround expertise of Allegro, will ensure the business is successful.
“As the world emerges from COVID, it is critical that we build more resilience in our logistics networks across Australia and New Zealand. Ecommerce in Australia still trails comparable countries at around 15% of sales.
“The retail sector’s future success will depend greatly on Global Express providing the competitive delivery service necessary to underpin expansion,” she said.
Long term focus
Adrian Loader, a founding partner of Allegro Funds, who will chair the new company, said the strong funding commitment and ability to recruit and retain talent was evidence of Allegro’s long-term commitment to the business.
“With enviable assets, funding of $500m obtained and now an industry leading CEO announced, Global Express is putting in place all the ingredients required for long-term success,” Mr Loader said.
“We are pleased to have built a close and collaborative relationship with Toll Group as we work towards completing the transaction. After completion, we will work hard to build an equally productive relationship with our suppliers, landlords and other business partners.”
Ms Holgate said the multi-year transformation program would begin by listening to the organisation’s stakeholders.
“The company’s customers, employees and business partners have all been very loyal to Global Express, so our transformation plan must begin by listening and acting on their insights,” she said.
“I understand how much they all depend on Global Express, and that our success in the future will help drive theirs,” she said.
Ms Holgate has committed to a 100-day program of meetings with customers, business partners and employees in all the company’s main markets after she assumes the role.