Millennium Post

TVS Logistics seals Rs 50-cr deal to acquire US-based Wainwright Inc

TVS Logistics Services has acquired US-based supply chain provider Wainwright Industries in a deal valued at Rs 50 crore.

This would be the second acquisition for the Chennai- based TVS group company in the US, after it acquired Manufacturers Equipment and Supply Company in 2011.

'With the acquisition of Wainwright, we are now covered most elements of capability and I think, it gives us cross docking and vendor management inventory capability which we have been speaking about,' TVS Logistics Services managing director R Dinesh told reporters here.

'What we have been trying to do is to acquire overseas companies, which can give us those capabilities and then start deploying in Asian countries. This acquisition also help us to offer to our Indian clients,' he said.

Giving details about the transaction involved, Dinesh said, 'Wainwright will be 100 per cent owned by us. So, initially we are paying about Rs 25 crore, but we end up at Rs 50 crore if they perform in two years'.

The acquisition of 65-year-old $20 million Wainwright Industries would allow TVS Logistics to offer its services in Asian countries besides bringing in more clients.

'I do not know how we could find a different partner other than TVS. The values, the beliefs of our company (Wainwright) are practically mirror images,' Wainwright Industries, President, David Robbins said.

'We are very excited to be part of TVS. We believe that acquisition by TVS has set up us for what we think a very exciting growth within United States. We expect our revenues would grow from $20 million into $100 million in two years,' he said.

Wainwright Industries has two plants in North Carolina and another in South Carolina and employs about 300 people, he added.
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