Toll Group is selling its Global Express business to Australian private equity firm Allegro Funds. Global Express handles express parcel, freight delivery and domestic forwarding in Australia as well as contract logistics and transportation in New Zealand.

According to Toll Chairman John Mullen, the agreement is in line with Toll’s strategy to focus on its Asia-Pacific business. It also fits in with Allegro’s strategy of investing in Australian and New Zealand businesses.

“We have spent the last three years transforming and strengthening Global Express and today the business is a market leader. I am confident that under Allegro’s ownership, Global Express will have the support and focus it needs to reach its full potential,” he said.

“The divestment is consistent with Toll’s strategy to focus on being a pre-eminent Asia-Pacific logistics provider through its core businesses in contract logistics and freight forwarding.”

Adrian Loader, one of Allegro’s founding partners, said “We are excited about the future potential for Global Express and are committing A$500m in funding to continue the business’s transformation and support its growth over the long term.”