TVS Logistics acquires UK company Rico

This will help company achieve its target of $1 bn turnover by 2015 besides adding new verticals

 

TVS Logistics has announced the acquisition of UK-based Rico Logistics. This will help the company achieve its target of $1 billion turnover by 2015 besides adding new verticals. The total cost of acquisition, both primary and secondary, will be around Rs 100 crore.

R Dinesh, managing director, TVS Logistics, said the company was looking at inorganic growth. This is the third acquisition by TVS Logistics in the UK that was funded through KKR fund (which had invested Rs 265 crore in January 2012) and internal accruals.

Traditionally TVS Logistics has been focussed on the auto sector. The acquisition will add new verticals, including IT and telecom and equipment products.

The Rs 400-crore Rico Logistics will also bring IT capability and will help the company to offer new solutions for Indian and other Asian customers, said Dinesh.

Sanjive Sharma, MD, Rico Logistics, said the acquisition would help the company have more financial stability and give Rico potential of expanding its offering across Europe and the globe.