TVS Logistics Services, part of the Chennai-based TVS Group, has acquired UK's Multipart Holding to expand its business in Europe. The deal size was not disclosed. Multipart is one of the largest after market logistics firm in the UK and this deal will take TVS Logistics revenues to over Rs 1,000 crore. It will invest another Rs 125 crore in Multipart to fuel its growth.
TVS Logistics is now aiming to reach revenues of Rs 2,500 crore by 2012. The company plans to enter South American and Chinese markets, and consolidate its position in the US, Europe and Indian markets, it said in a release. It has raised private equity funding from Goldman Sachs and TVS Shriram Growth Fund.
The deal will give TVS Logistics access to new customers and access to Multipart's IT capabilities. It will also be able to expand to the area of defence and utility services with this acquisition. Also the deal will allow Multipart to source parts at lower cost from India.
TVS Logistics, which specialises in auto vertical, has expanded its business through acquisitions and JVs. It operates two JVs in India - TVS Dynamic Logistics Services and TVS Commutation Solutions - which have a combined revenue of Rs 100 crore.