[photopress:tollmontage.jpg,full,alignright]Bolt on. Remember that term. It seems to be coming into use in the area of logistics. For example, Logistics provider Toll Holdings Ltd (basically operating as an Australian company but now working throughout Asia) wants to expand in Asia and is looking for ‘bolt-on’ acquisition opportunities in China to add to its new Toll Asia business.
What does ‘bolt on’ mean?
In this context, a company of small to medium size that fits in and extends what already exists.
Paul Little, Toll chief executive told reporters after the company’s annual general meeting last week, ‘We’re very keen to work with our Australian-based companies to assist them putting in place this seamless logistics service out of China into Australia. At the present time, we’ve got a couple of the parts of the logistics chain that we need that aren’t there and we’re talking to some prospective acquisitions in that regard now.’
How big will these acquisitions be? Not very big.
Paul Little said, ‘They’re only bolt-on, they’re not significant in scale, but they’re very significant in the value-add that they’ll bring.’
Source: The Age
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