TVS Logistics Services Ltd has entered into an agreement with Caisse de Dépôt et Placement du Québec (CDPQ), Canadian pension fund that will invest INR 1,000 crore (USD 155 million) to get a minority stake in the privately-held subsidiary of the TVS Group.
Existing investors Goldman Sachs and KKR and Co. Lp will be exiting their investments in TVS Logistics following this transaction. Most of the joint stake will be purchased by the Canada-based firm, while the remaining stake will be acquired by the TVS family members and the management, the company said.
However, the company didn’t disclose the size of the stake.
- Dinesh, managing director, TVS Logistics said in a statement, “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.”
Dinesh also added that the TVS Logistics has grown at a CAGR of more than 30% and also has a strong record of global track growth, both organically and through acquisitions.
The company provides integrated logistics services to sectors including automobile, IT, healthcare, beverages, telecom, retail, FMCG and defence, has presence in 14 countries.
Michael Sabia, president and chief executive officer, CDPQ said in a statement, “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.”
Earlier this month, Canada’s second largest pension fund, CDPQ had inked a partnership with Edelweiss Financial Service Ltd for over the next four years to invest around INR 5,000 crore (nearly USD 750 million) in stressed assets and specialized corporate credit in India.
CDPQ is one of the leading institutional fund managers in Canada that invests globally in major financial markets, private equity, infrastructure and real estate.