You are here: Home » Companies » News
Business Standard

CDPQ invests $155 mn in TVS Logistics

Existing investors Goldman Sachs and KKR will fully exit

T E Narasimhan & Gireesh Babu  |  Chennai 

Image via shutterstock.com
Image via shutterstock.com

Canadian manager Caisse de dépôt et placement du Québec (CDPQ) has invested around $155 million (around Rs 1,000 crore) to acquire stake in Ltd. (TVS LSL), a third-party logistics service provider and part of TVS Group.

Besides this, the promoters have also pumped Rs 200 crore into the company.



CDPQ will invest this money to acquire a sizeable minority stake in TVS Logistics Services. After this transaction, and will exit their investments in TVS Logistics Services. CDPQ will purchase most of their joint stake, while the TVS family members and management will buy the remainder.

The transaction is subject to the approval by the respective boards and by the (CCI). While both companies declined to share information on the stakes to be transferred, sources said and held around 21 per cent each in the company.

CDPQ invests $155 mn in TVS Logistics
CDPQ said at a later stage it was ready to commit significant additional capital to finance transformative acquisitions and support the expansion of in India and globally.

The new investor comes at a time when is getting ready for second phase of growth. The company has set a target of $3 billion over the next three years.

Last year, the company clocked Rs 4,200 crore revenue and it expects to close 2016-17 with a revenue of Rs 5,700 crore, according to R Dinesh, managing director, TVS Logistics Services.

TVS Logistics has a strong global track record of growth, both organically and through acquisitions. Earlier, the focus of was predominantly in automobiles, but it has started catering to e-commerce, defence and other sectors.

The company had benefitted from its partnership with and KKR, said Dinesh, adding that CDPQ would be a long-term partner.

will continue look at acquisition opportunities. Dinesh said future acquisitions would be mainly for market and customer access, while the previous acquisitions were more for know-how.

RECOMMENDED FOR YOU

CDPQ invests $155 mn in TVS Logistics

Existing investors Goldman Sachs and KKR will fully exit

Existing investors Goldman Sachs and KKR will fully exit Canadian manager Caisse de dépôt et placement du Québec (CDPQ) has invested around $155 million (around Rs 1,000 crore) to acquire stake in Ltd. (TVS LSL), a third-party logistics service provider and part of TVS Group.

Besides this, the promoters have also pumped Rs 200 crore into the company.

CDPQ will invest this money to acquire a sizeable minority stake in TVS Logistics Services. After this transaction, and will exit their investments in TVS Logistics Services. CDPQ will purchase most of their joint stake, while the TVS family members and management will buy the remainder.

The transaction is subject to the approval by the respective boards and by the (CCI). While both companies declined to share information on the stakes to be transferred, sources said and held around 21 per cent each in the company.

CDPQ invests $155 mn in TVS Logistics
CDPQ said at a later stage it was ready to commit significant additional capital to finance transformative acquisitions and support the expansion of in India and globally.

The new investor comes at a time when is getting ready for second phase of growth. The company has set a target of $3 billion over the next three years.

Last year, the company clocked Rs 4,200 crore revenue and it expects to close 2016-17 with a revenue of Rs 5,700 crore, according to R Dinesh, managing director, TVS Logistics Services.

TVS Logistics has a strong global track record of growth, both organically and through acquisitions. Earlier, the focus of was predominantly in automobiles, but it has started catering to e-commerce, defence and other sectors.

The company had benefitted from its partnership with and KKR, said Dinesh, adding that CDPQ would be a long-term partner.

will continue look at acquisition opportunities. Dinesh said future acquisitions would be mainly for market and customer access, while the previous acquisitions were more for know-how.
image
Business Standard
177 22

CDPQ invests $155 mn in TVS Logistics

Existing investors Goldman Sachs and KKR will fully exit

Canadian manager Caisse de dépôt et placement du Québec (CDPQ) has invested around $155 million (around Rs 1,000 crore) to acquire stake in Ltd. (TVS LSL), a third-party logistics service provider and part of TVS Group.

Besides this, the promoters have also pumped Rs 200 crore into the company.

CDPQ will invest this money to acquire a sizeable minority stake in TVS Logistics Services. After this transaction, and will exit their investments in TVS Logistics Services. CDPQ will purchase most of their joint stake, while the TVS family members and management will buy the remainder.

The transaction is subject to the approval by the respective boards and by the (CCI). While both companies declined to share information on the stakes to be transferred, sources said and held around 21 per cent each in the company.

CDPQ invests $155 mn in TVS Logistics
CDPQ said at a later stage it was ready to commit significant additional capital to finance transformative acquisitions and support the expansion of in India and globally.

The new investor comes at a time when is getting ready for second phase of growth. The company has set a target of $3 billion over the next three years.

Last year, the company clocked Rs 4,200 crore revenue and it expects to close 2016-17 with a revenue of Rs 5,700 crore, according to R Dinesh, managing director, TVS Logistics Services.

TVS Logistics has a strong global track record of growth, both organically and through acquisitions. Earlier, the focus of was predominantly in automobiles, but it has started catering to e-commerce, defence and other sectors.

The company had benefitted from its partnership with and KKR, said Dinesh, adding that CDPQ would be a long-term partner.

will continue look at acquisition opportunities. Dinesh said future acquisitions would be mainly for market and customer access, while the previous acquisitions were more for know-how.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard