Caisse de dépôt et placement du Québec will acquire a minority stake in India-based logistics service provider TVS Logistics Services Ltd. for US$155 million.
Following the transaction, existing investors Goldman Sachs and KKR will fully exit their investments in the company. The remaining stake will be acquired by TVS Logistics’ family members and management.
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“Over the years, we have benefitted from a meaningful partnership with global investors like Goldman Sachs and KKR,” said R. Dinesh, managing director of TVS Logistics, in a release. “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.”
Caisse said it’s prepared to commit significant additional capital to finance acquisitions and support the expansion of TVS Logistics in India and globally.
“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,” said Michael Sabia, president and chief executive officer at Caisse, in a release.
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“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.”
TVS Logistics has a significant presence in the U.S. and Britain. Its British business has grown sevenfold in the last five years, from £40 million to £275 million. It’s also one of the largest Indian employers in Northern England with more than 3,500 employees in Britain and in Europe. In the U.S., it operates through seven facilities with more than 800 employees.
Caisse opened CDPQ India, its New Delhi office, in March 2016.