Toll Holdings
Logistics giant Toll Holdings (Au:TOL) is hinting at major new acquisitions now that its restructuring is complete, and the freight business Linfox is in its sights. Toll is not underestimating the competition issues this might create with the authorities. Nevertheless, it was to open the
way to acquisitions that Toll split itself into two companies: Toll owning the logistics assets, and a new company Asciano owning assets such as stevedore Patrick Corp, rail company Pacific National and its stake in Virgin Blue. This was done in order to satisfy the Australian regulator, which was making moves to break Toll's competitive power. Toll has grown enormous on the back of acquisitions, numbering 22 at the time it made its pitch for Patrick. One of its most problematic has been the NZ railway assets now contained in Toll NZ. But this is a pinprick compared to its successes.
Hellaby Holdings
Hellaby (HBY) chief executive David Houldsworth announced his resignation last week, closing another chapter in the diversified company's recent decline. At the beginning of May Hellaby announced it had initiated a strategic review of the footwear businesses, and was considering a number of alternatives to create additional value from them. But last week it issued a profit warning, saying annual profit would fall by a third due to a disappointing performance from its industrial assets. Hellaby has been a strong recovery story for many years, with a clever eye for acquisitions. It developed in two directions, footwear and clothing and industrial assets, adding value for shareholders along the way. But in a still strong economy it seems to have lost its way. The acquisition of BBQ Factory at a premium price, when the latter failed to list on the sharemarket, was very unlike Hellaby. And recently even the strong assets have been slipping.
* Views expressed in this article are those of IRG, not the Weekend Herald
