Companies

TVS Logistics acquires US company

Our Bureau Chennai | Updated on January 24, 2011 Published on January 24, 2011

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TVS Logistics Services Ltd on Tuesday announced the acquisition of a US-based logistics company, MESCO. The $30-million MESCO is based in Michigan and specialises in providing logistics services to the automotive and industrial tool and dye sector.

Alongside, TVS Logistics has also bought out its American partner, Global Rush, in the joint venture TVS America.

The company will spend Rs 50 crore on the two acquisitions, Mr R. Dinesh, Managing Director, TVS Logistics, told a press conference here.

TVS Logistics, which intends to come out with its initial public offering in 2012, expects MESCO to take its consolidated turnover for the current year to Rs 1,200 crore. Last year, TVS Logistics achieved a turnover of Rs 650 crore.

MESCO is the second acquisition of TVS Logistics in 15 months — in October 2009, the company acquired Multipart Holding based in the UK.

While Multipart Holdings specialises in outbound logistics, MESCO's expertise is in the inbound — the two expertises are complementary.

MESCO offers two kinds of services. One is where it takes over the responsibility for the entire supply chain operations, giving the customer just in time delivery of products. The other is doing parts of SCM on assignment basis.

The company also has operations in China.

Mr Dinesh said that TVS Logistics planned more acquisitions, hinting at the ‘aviation' and ‘packaging' sectors.

Published on January 24, 2011
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