Toll Global Logistics, a division of Toll Group, has announced a restructure that will combine its finished vehicle distribution service with automotive storage, processing and rectification specialist, PrixCar, the 50-50 joint venture between Toll and K-Line Auto-Logistics Pty Limited.

Toll is selling down its finished vehicle distribution service – part of its Toll Global Logistics, Automotive business (formerly Toll AutoLogistics) – "to establish a more sustainable and competitive business model that will produce stronger outcomes for both companies" according to a company statement.

The statement continued: "The change will provide customers with a fully integrated, end-to-end supply chain management service, and comes in response to broader automotive industry trends, such as the decline in local manufacturing and the increase in vehicle imports."

The net impact of the sale will be a $75m after tax cash inflow to Toll, and a pre-tax gain of approximately $47m ($37m after tax). Toll will retain its 50% interest in PrixCar.

For the 2012 financial year, Toll Global Logistics' finished vehicle distribution service is expected to have revenues of around $158m and earnings before interest and tax of more than $11m. Following the restructure, Toll will account for its 50% share of PrixCar's earnings as associate earnings.

UPS has announced it has the necessary financing in place for its intended recommended public offer for TNT Express.

On March 19, 2012, UPS and TNT Express jointly announced a conditional agreement on a recommended all-cash offer of €9.50 per ordinary share for TNT Express.

The offer values 100% of the issued and outstanding TNT Express ordinary shares at approximately €5.16bn. UPS will finance the offer by using approximately €3.7bn of available cash on its balance sheet and approximately €1.46bn in debt through existing credit facilities.

The recent deal to sell a majority stake in CAT Logistics Services (CLS) is a remarkable one, says Ti's Chief Analyst Thomas Cullen.

Platinum Equity, a US private equity company has agreed to pay US$750m for 65% of the equity of CAT Logistics Services (CLS). As is so often the case with private equity deals the rest of the terms are being kept secret, even, it appears, from the shareholders of Caterpillar.

In March 2011, when CLS first announced its intention to look for an investor, it did not define the type of deal the company was looking for. Rather, it stated that it was "considering options" such as "a potential sale of the third party business or structuring it as an independent business within Cat Logistics".

The progress of the deal appeared to slow later on in the year, something which Caterpillar blamed on "economic headwinds". This might imply that CLS was struggling to find a buyer for the business.

Despite this, the agreement with Platinum Equity looks to be a success for Caterpillar. Although CLS has never been very open about its business, it did start to publish details of the company in parallel with its attempts to sell the business last year. This revealed that CLS had revenues of $2.2bn in 2010 and $1.95bn in 2009. The business had de facto operating profits of $412m in 2009 although 2010 profits have not been disclosed as far as Ti is aware.

However, $1.57bn of the total $2.2bn revenues is described as 'inter-segment sales and revenue'. This must be assumed to be the revenue derived from supporting Caterpillar's own spares and manufacturing operations. 'External sales and revenues' is disclosed as $659m. As the business sold is largely, or though not wholly, said to concern the non-Caterpillar brand 'third party' business, it is to be extrapolated that the revenue of the business Platinum is investing in is around $700m.

Estimating profitability in this sector, as ever, is quite tricky. However, the 2009 operating profit figure of $412m is remarkably high. Comparisons are difficult, however CEVA is a major competitor in automotive spare-parts logistics and its contract logistics business sees an EBITDA margin of around 5-6%. A question arises, is the third party business of Caterpillar Logistics Services really delivering four or five times the margin of its rivals?

If so, the value of CLS of more than $1bn suggested by the sale to Platinum would suggest a price-to-earnings ratio of around 10 times. This ratio also has to be informed by the fact that CLS has seen only very moderate revenue growth since 2005.

US-based manufacturer, Caterpillar Inc., has announced it has signed an agreement that will result in Platinum Equity acquiring a 65% equity stake in Caterpillar Logistics Services LLC, the third party logistics division of its wholly owned subsidiary, Caterpillar Logistics Inc. (Cat Logistics). The overall transaction is valued at approximately $750m. Under the terms of the agreement, Caterpillar would retain a 35% equity stake.

As part of the agreement with Platinum, the third party logistics business will continue to provide logistics services for non-Cat branded parts including FG Wilson, Perkins, Solar, as well as for Caterpillar Japan.

The proposed sale does not impact Caterpillar manufacturing logistics and transportation operations and Cat brand parts distribution; these will continue as core businesses within Cat Logistics.

"The sale of the third party logistics business would be a key step in the execution of our enterprise strategy. This event enables Caterpillar to increase its focus on our core business that aligns with our strategic business model," said Stu Levenick, Caterpillar group president with responsibility for Customer & Dealer Support. "We believe the transaction with Platinum will set the third party logistics business on a path for continued growth and success."

Platinum Equity Partner Jacob Kotzubei said the investment is a perfect fit for Platinum given the firm's significant experience in executing carve-out transactions and operating logistics businesses.

"We have a lot of experience owning and operating businesses that provide complex supply-chain solutions," said Kotzubei. "We know what customers expect, and we share Cat Logistics' commitment to the highest levels of service and dependability."

The transaction is expected to close in the third quarter of 2012.

Dockwise Ltd., a company that provides transport services for the oil and gas industry, has announced that, through its subsidiary Dockwise White Marlin, it has completed the acquisition of 19% of the shares in Fairstar Heavy Transport. The acquisition brings Dockwise's total shareholding to 28%.

Dockwise still has one conditional purchase agreement for just over 26% of the shares in Fairstar currently owned by Oceanus, which would give the company a 54% stake. However, Fairstar, based in Rotterdam and listed in Oslo, has alleged that the acquisition would not comply with the relevant rules and regulations and indicated it would commence an investigation into "undisclosed Dockwise shareholder agreements." Dockwise has rejected these allegations.

Kerry Logistics has set up a joint venture with Mosskito Logistics in Australia to expand its cold chain distribution segment in Australia. The joint venture has been rebranded as Kerry Logistics Cold Chain.

Kerry Logistics Cold Chain operates a fleet of over 30 reefer trucks involved in the distribution of food and pharmaceuticals throughout the metro and regional area of Victoria State in South West Australia. The company has two cold storage facilities located in Melbourne and Bendigo.

TransForce Inc has announced that, through its subsidiary I.E. Miller Services, Inc, it has acquired certain assets of Peak USA Energy Services. Peak USA, a subsidiary of Nabors Industries Ltd., is a diversified oilfield service company specializing in rig moving, custom heavy hauling, crane and rigging services, and oilfield transportation.

The acquired business spans two operating districts located in Alice and Kilgore, Texas, providing work to a combined total of about 75 employees. The transaction is valued at more than $10m and is expected to generate annual revenues of approximately $25m for TransForce.