Canada’s CDPQ buys minority stake in TVS Logistics
Existing investors Goldman Sachs and KKR will exit TVS Logistics after Canada’s CDPQ said to invest Rs.1,000 crore in TVS Group unit
Chennai: Caisse de Dépôt et Placement du Québec (CDPQ), Canada’s second largest pension fund, on Wednesday agreed to invest Rs1,000 crore ($155 million) to buy a minority stake in TVS Logistics Services Ltd.
Existing investors Goldman Sachs and KKR and Co. Lp will sell their investments in TVS Logistics through the transaction. CDPQ will purchase most of the shares owned by Goldman and KKR and TVS family members and the management will purchase the rest, the company said.
TVS Logistics didn’t disclose the size of the stake.
“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,” said the firm’s managing director R. Dinesh.
TVS Logistics has grown at an annual average pace of over 30% and has a strong global track record of growth, both organically and through acquisitions, Dinesh said.
TVS Logistics, which provides integrated logistics services to sectors such as automobile, beverages, information technology, healthcare, telecom, retail, consumer goods and defence, has presence in 14 countries.
“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,” said Michael Sabia, president and chief executive officer, CDPQ.
Earlier in October, CDPQ signed a long-term partnership with Edelweiss Financial Service Ltd to invest approximately Rs5,000 crore (nearly $750 million) in stressed assets and specialized corporate credit in India over the next four years.
CDPQ invests globally in major financial markets, private equity, infrastructure and real estate.