Kohlberg Kravis Roberts to buy 20 % of TVS Logistics Services for Rs250 crore
19 Apr 2012
Private equity firm, Kohlberg Kravis Roberts & Co (KKR) is planning to acquire a 20-per cent stake in Chennai-based TVS Group firm TVS Logistics Services Ltd, for $55 million (Rs250 crore).
TVS Logistics, in which Madurai-based TVS Group holds over a 60-per cent stake, had in 2008 received Rs100 crore each from Goldman Sachs and TVS Group venture capital arm, TVS Capital Fund.
The investment from KKR will be used by the company to scale up its supply chain management operations, as it prepares for an IPO, The Economic Times reported, citing a person with direct knowledge of the transaction.
"The money will be used for acquisitions as well as expand to new geographical areas. The company intends to strengthen its footprint in the domestic as well as global market,'' he is quoted to have told the paper.
TVS Logistics, which has grown through aggressive overseas acquisitions, had earlier said that it was likely to go in for an initial public offering in 2012.
TVS Logistics operates as a logistics solutions provider across multiple verticals including automotive, distribution, electronics, and discrete component manufacturing.
It handles over $1.5 billion worth of parts annually and has operations in the UK, Spain, Thailand, the US, Germany and China, through about two million sq. ft. of warehouse space located in 39 locations both in India and abroad.
The Indian clients of TVS Logistics' include Ashok Leyland, Ford India, General Motors, JCB, Mahindra & Mahindra, Royal Enfield, Tata Motors, TVS Motor Company, Pricol, Cummins and Rane group.