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Canada’s CDPQ to buy stake in TVS Logistics Services for $155m

LBR Staff Writer Published 21 October 2016

North American pension fund manager Caisse de dépôt et placement du Québec (CDPQ) has signed an agreement to purchase minority stake in India-based TVS Logistics Services (TVS LSL) for around $155m.

Once the deal concludes, the existing investors Goldman Sachs and KKR will fully exit their investments in Indian third-party logistics service provider.

TVS LSL offers end-to-end integrated logistics services to sectors, including automobile, beverages, IT, healthcare, telecom, retail, FMCG and defence.

The firm, which has around 10 million ft² of warehouse space in India, operates in 14 countries such as the US, the UK, Spain, Germany, Italy, France, Singapore, Hong Kong, Thailand, China, Australia, New Zealand and Mexico.

Through its UK acquisitions such as Rico Logistics and Multipart, TVS LSL expanded its service capabilities, including last mile delivery, demand forecasting, and technology logistics.

TVS LSL also added capabilities such as sub-assembly and sequencing through its Wainwright acquisition in the US.

With over 3,500 employees in the UK and Europe, the firm is one of the largest Indian employers in Northern England. It also employs around 800 people in seven facilities of the US.

The deal is subject to the approval by respective boards and Competition Commission of India (CCI).

TVS Logistics Services managing director R. Dinesh said: “We are happy to have CDPQ, a leading global institutional asset manager, on board. Over the years, we have benefitted from a meaningful partnership with global investors like Goldman Sachs and KKR.”

CDPQ president and CEO Michael Sabia said: “TVS Logistics is well positioned to seize growth opportunities resulting from recent tax reforms in India and global demand for state-of-the-art logistics services.”

Image: TVS LSL provides end-to-end integrated logistics services to its customers in different industries. Photo: courtesy of Caisse de dépôt et placement du Québec.