TVS Logistics, Tata Opportunities to acquire DIESL

In a release, TVS said the deal would allow the two companies to combine their complementary strengths, as TVS is strong in the automotive, beverage, IT, healthcare and defense sectors, whereas DIESL specializes in consumer durables, retail, technology and fast-moving consumer goods.

The companies are also geographically compatible, with TVS operating in south and west India and DIESL operating in the north and east.

TVS did not specify the value of the DIESL acquisition, but VCCircle reported that Tata would invest up to INR2.5 billion ($40 million) to acquire its stake in TVS. The investment, which is subject to regulatory approval, will be made through the firm's flagship Tata Opportunities Fund.

DIESL was founded in 2003 as a joint venture between Tata International and Tata Industries. Its customers include international companies like Walmart, Hyundai, and Sony, along with Indian companies such as Godrej and Tata Motors. The company's revenue for the year ended March 2015 was INR9.5 billion.

Tata closed its Opportunities fund in 2010 at $600 million. The fund is sector-agnostic and mainly invests to support companies within the Tata network, though it also invests outside the network as well.

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• Topics
• South Asia
• Support services
• Buyouts
• Buyout
• India
• Tata Capital
• buyout
• Logistics