RICO Parent company TVS Logistics has acquired majority stake in Australian supply chain solutions company Transtar in a Rs 200-crore deal that will expand its presence in Asia and widen the doorway into China.
CHENNAI: Chennai-based TVS Logistics, part of the Rs 45,600-crore ($7-bilion) TVS Group, has acquired majority stake in Australian supply chain solutions company Transtar in a Rs 200-crore deal that will expand its presence in Asia and widen the doorway into China.
Although TVS has operational presence in Asian countries in Singapore, Malaysia, and Thailand, this deal will give it deeper access in Australia, and in China owing to Transtars strong warehousing presence in the country. The company has about 13,000 sq. m of warehousing space across countries in Asia.
TVS Logistics Managing Director R Dinesh said the acquisition completes TVS suite of services with the addition of freight forwarding capabilities. Also, it widens the spread in the South-East Asian nation, considering the fact that its previous acquisitions have been in the West.
Transtar International Freight with an annual revenue of Rs 850 crore ($130 million) is one of Australias largest privately owned international logistics companies, with presence in 10 of the top 12 container ports of the world. Over 70% of its revenues come from Asian markets. Executed through TVSs Singapore-based JV arm, the deal size of Rs 200 crore includes the price of the majority stake in Transtar and future investments into the company.
This is TVS Logistics seventh acquisition over the last four years, including key acquisitions of US players such as Michigan-based MESCO and UKs Rico Logistics. The company, with revenues over Rs 4,000 crore, is expected to go for an IPO in the future