The Canadian fund Caisse de dépôt et placement du Québec has purchased a $155 million stake in Chennai, India-based third-party logistics provider TVS Logistics Services from Goldman Sachs and KKR & Co., according to a statement from CDPQ.
Canadian investment fund Caisse de dépôt et placement du Québec (CDPQ) has acquired a “sizable” minority stake in Chennai, India-based third-party logistics provider TVS Logistics Services Ltd., according to a statement from CDPQ.
CDPQ, the second largest pension fund in Canada, paid $155 million to purchase a majority of shares currently held by Goldman Sachs and KKR & Co., and parent company TVS Group will purchase the rest for an undisclosed price.
The fund said it is prepared to commit “significant additional capital” beyond the initial equity investment to finance “transformative acquisitions and support the expansion of TVS LSL in India and globally.”
The transaction is subject to the approval of the respective company boards and the Competition Commission of India (CCI).
Founded in 1995 as a business unit of T V Sundram Iyengar & Sons Ltd., TVS LSL became an independent subsidiary in December 2004, and since then, has expanded its service capabilities through acquisitions such as Rico Logistics and Multipart in the United Kingdom, and Wainwright in the United States. The company employs more than 3,500 people in the UK and Europe, and has over 800 workers in the U.S.
CDPQ in March 2016 opened a New Delhi-based office, led by Anita Marangoly George, managing director, South Asia.
“We are happy to have CDPQ, a leading global institutional asset manager, on board,” R. Dinesh, managing director of TVS Logistics Services Ltd., said of the deal. “Over the years, we have benefitted from a meaningful partnership with global investors like Goldman Sachs and KKR. We believe CDPQ is the perfect long-term partner for our next phase of growth as we look to expand the scale of our business.
“TVS Logistics, over the years, has grown at a CAGR of more than 30 percent and has a strong global track record of growth, both organically and through acquisitions,” he added.
“Efficiency in delivering goods to customers is a key driver of business performance,” said CDPQ President and CEO Michael Sabia. “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. CDPQ’s strategy is to identify world-class management teams and to support them over the long term. This is precisely what we intend to do with TVS Logistics as it expands in its home market and abroad.”
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