TVS Logistics Services takes over UK's Rico Logistics with stake buy
"To achieve USD 1 billion (revenue) by 2015, we will need to have few more acquisitions. I expect 50 per cent contributions would be from organic and remaining through inorganic growth," TVS Logistics Services Ltd Managing Director R Dinesh told reporters here.
The acquisition of Rico Logistics was done through holding company TVS Logistics UK, he said.
This acquisition is expected to help TVS Logistics to add key service 'capabilities', including foray into a new verticals like IT, Telecommunication and Medical equipment, Dinesh said.
TVS Logistics Services last year had said it had reached an agreement with global investment firm Kohlberg Kravis Roberts and Company (KKR) and Goldman Sachs for an investment of Rs 268.8 crore (approximately USD 53 million). KKR would invest Rs 242.4 crore.
For acquisition of Rico Logistics, Dinesh said some part of the funds (invested by KKR) was utilised along with some internal accruals.
"This acquisition help us to add a number of new capabilities and allow us to offer new solutions to our existing and new customers in India and Asia. We will have synergies across our operation," he said.
This is the third acquisition by the city-based company in the United Kingdom, after CJ Components in 2004 and Multipart Holdings in 2009, which are now functioning under one umbrella organisation -- TVS Supply Chain Solutions, Dinesh said.
Stating that the existing management of Rico Logistics would continue
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