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 the 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.