TVS Logistics Services has reached an agreement with CDPQ, a North American pension fund manager, whereby the investor will buy out two existing PE investors — Goldman Sachs and KKR — for nearly $155 million, or Rs 1,000 crore, for a minority stake.
Goldman invested nearly Rs 125 crore in 2008 and KKR invested nearly Rs 248 crore in 2012 for an undisclosed stake in the third-party logistics service provider. “Goldman and KKR have completely exited. CDPQ will purchase most of their joint stake, while TVS family members and management will acquire the reminder,” R Dinesh, MD of TVS Logistics, said. The promoter family and management will fork out nearly Rs 200 crore. JM Financial advised KKR and Goldman.
“This is the final phase of evolution as a private company,” Dinesh said, hinting that the next could be a public listing. TVS has built the logistics business ground up by a series of acquisitions, backed by PE money. “We will end this fiscal with a Rs 5,700-crore revenue, up from Rs 4,200 crore last year, and the aim is to triple it three-five years from now,” he said.
While Wednesday’s transaction is secondary (the funds do not come into the company), TVS said it could tap the investors for funding on a need basis.
For the Canadian fund, this is the fourth cheque-writing affair — after a power exchange platform with ICICI Venture, a stressed asset business opportunity in partnership with Edelweiss and picking up a stake in Azure IPO — since March when it opened its India office.
