Chennai :

TVS Logistics  Services Ltd has acquired 85% stake in UK-based Rico Logistics- a distribution and inventory management company. Both companies will operate under one brand – TVS Supply Chain Solutions.

The total cost of acquisition, both primary and secondary, is Rs 100 crore, and has been funded through KKR fund  (which invested Rs 265 crore in January 2012) and internal accruals.

The acquisition would help the company add new service capabilities like ‘last mile connectivity’ and enter new service verticals like IT and telecom products service, and peripherals like medical equipment, R Dinesh, managing director of TVS Logistics Services said.

The acquisition, TVS Logistics’ third after CJ Components and Multipart Holdings , will help the company to achieve its target of $1 billion turnover by 2015, half of which will come from inorganic growth, Dinesh said. The company now has a turnover of Rs 2,500 crore, and has three more acquisitions on the cards. The other three too will bring to TVS Logistics Services new capabilities, Dinesh said.

Post acquisition, Sanjive Sharma, the managing director of Rico, retains his stake in the company while TVS Logistics has acquired stake from the other two of Rico’s partners.

TVS Logistics will look at further consolidating its presence in India, USA and Europe and will look for opportunities to set up presence in other potential markets in the next few years, a statement from the company said.

source: http://www.timesofindia.indiatimes.com / Home> City> Chennai / by Sushma U N, TNN / February 21st, 2013