TVS Logistics, leading third party logistics service provider, has
acquired 85 per cent stake in Rico Logistics – a unique and seamless
Distribution and Inventory Management Company, headquartered in Slough, UK. The
acquisition is expected to help the company add key service capabilities such
as ‘last mile rapid response’ and new service verticals such as I.T., Telecom
and Medical that can further strengthen its services to its customers globally.
The total cost of acquisition, both primary and secondary, is Rs 100 crore, and
has been funded through KKR Fund (which has invested Rs 265 crore in January
2012) and internal accruals.
This is the third acquisition by TVS Logistics in UK after CJ Components
in 2004 and Multipart Holdings in 2009. These two companies are now functioning
under one brand – TVS Supply Chain Solutions (TVS SCS). The acquisition of Rico
was done through the holding company (TVS Logistics, UK) which will not only
retain the existing 450 employees at Rico but will also help expand its
business and add new employment opportunities.
TVS SCS also confirmed that
Rico’s Managing Director Sanjive Sharma will continue to oversee his company.
With this, the employees’ strength of TVS Logistics in Europe will exceed the
2000 mark (both direct and indirect) and will have a bigger market presence.
Speaking on the occasion R Dinesh, Managing Director, TVS Logistics
Services Ltd., said, “The Rico acquisition helps us to add new service
capabilities like ‘last mile connectivity’ and enter new service verticals like
IT and telecom products service, and peripherals like medical equipment to our
existing and new customers in markets like India and other parts of Asia.”
The company now has a turnover of Rs 2,500 crore, and has three more acquisitions on the
pipe line.
Sanjive Sharma, Managing Director, Rico Logistics, said, “This gives
Rico the tremendous potential of expanding its offering across Europe and the
globe, with a major partner, who has both the credibility and financial
standing in this highly exciting industry sector.”
TVS SCS initiated the
acquisition to take advantage of Rico’s technology led rapid deployment
network throughout the UK and in Europe and its service resources management
capability, as well as its strategic warehousing and industry expertise. The
combination of TVS SCS managed centralised inventory and Rico’s last mile rapid
response means that customers will benefit from a comprehensive end-to-end
solution for spare parts.
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