Chennai: TVS Logistics on Thursday said that it has acquired 100% stake in US-based unlisted supply chain firm Wainwright Industries. The acquisition was done to build capabilities like cross docking . R Dinesh, managing director of TVS Logistics said that this marked the end of phase one of acquisition process. "We believe these services would be in demand in India soon as volumes increase," he said.
Dinesh said that revenues of Wainwright were Rs 125 crore and TVS would pay Rs 25 crore initially for the deal and while the remaining would be paid after two years, subject to performance of the unit. The second payment tranche could range between Rs 25 to Rs 50 crore depending on performance milestone achieved by the unit.
Wainwright is a 65-year-old family owned business. Post acquisition, David Robbins, the promoter of the target unit, will continue to lead this unit and the existing management has also been retained. "We are the second generation and there's no third generation to manage it further. So we looked for deals which would ensure continuity. We split our manufacturing and logistics division and were sold, to an American firm and TVS respectively ," said Robbins.
This is the second acquisition by TVS logistics in USA after it acquired manufacturers equipment and supply company (MESCO) in 2011.
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