Canada’s CDPQ buys stake in TVS Logistics
Oct 22, 2016: Canada-based pension fund manager Caisse de dépôt et placement du Québec (CDPQ) has reportedly agreed to invest Rs1,000 crore ($155 million) to buy a minority stake in TVS Logistics Services Ltd.
With this development, the multinational third party logistics service provider will also see the planned exit of investors Goldman Sachs and KKR from TVS LSL. While Goldman Sachs had been an investor in TVS LSL for eight years investing Rs.125 crore, KKR had been associated with the company since 2012 and had invested Rs.240 crore in the company. Apart from the sizeable minority stake that CDPQ acquired, the family members of the TVS group and the management also invested Rs.200 crore.
Beyond this equity investment, CDPQ, which is Canada’s second largest pension fund, is likely to commit significant additional capital to finance transformative acquisitions and support the expansion of TVS LSL in India and globally.
TVS Logistics has grown at an annual average pace of over 30% and has a strong global track record of growth, both organically and through acquisitions. This year, TVS LSL aims to post revenues of Rs.5,700 crore compared with Rs.4,200 crore recorded in 2015-16. The aim was to triple it in three to five years.
Last year the company had also inked a deal to acquire 100 per cent stake in Tata-controlled Rs.953-crore Drive India Enterprise Solutions Ltd. (DIESL) for an undisclosed sum.
TVS Logistics, which provides integrated logistics services to sectors such as automobile, beverages, information technology, healthcare, telecom, retail, consumer goods and defence, has presence in 14 countries.
