TVS Logistics Services Ltd. has acquired a second company in the U.S.
It has brought under its fold Missouri-headquartered Wainwright Industries, an end-to-end supply chain provider.
The acquisition involves, in all, a total consideration of around Rs.50 crore.
Wainwright is a 65-year-old company, and has a sales turnover of $20 million. It has two plants in the U.S., and employs around 300 people. The U.S. firm has around 13 major clients, including General Motors.
TVS Logistics made its first buy in the U.S. when it acquired Manufacturers Equipment and Supply Company (MESCO) in 2011.
Like in the case of earlier acquisition, TVS Logistics has decided to retain the existing management in this instance as well. Accordingly, David Robbins, President, will continue to manage Wainwright.
Addressing a press conference, R. Dinesh, Managing Director, TVS Logistics, said the acquisition would help his company add unique service capabilities such as cross-docking and sub-assembly for manufacturers, and move up in the value chain system. Fielding a range of questions, he said, “with this, we have covered most elements of our acquisition strategy”. From a capability perspective, the latest buy marked the end of “our acquisition strategy,” he said.
However, he hastened to add that TVS Logistics could consider further acquisitions if warranted from customer or geography perspective.
Mr. Dinesh said these acquisitions would help TVS Logistics deploy these capabilities in Asian countries. Eventually, the objective was also to offer these to Indian clients, he added.
TVS Logistics is a Rs.2,200-crore turnover company. India and the U.K. contribute around Rs.1,000 crore each to the company’s turnover. The reminder comes from the U.S. and Thailand.