Madurai to Michigan - TVS Logistics acquires US company
January 18th, 2011 - 10:00 pm ICT by IANSChennai, Jan 18 (IANS) The Madurai-based TVS Logistics Services has acquired US-based Manufacturers Equipment and Supply Company (Mesco) to consolidate its holdings in TVS America, a top company official said Tuesday.”We have acquired the $30 million revenue Mesco based in Michigan and 51 percent stakes of Global Rush, US in TVS America at an outlay of around Rs.50 crore. We have formed a holding company in the US - TVS Logistics America - to house our investments in the US,” Managing Director R. Dinesh told reporters.
According to him, the company is set to hit the market with an initial public offering (IPO) sometime this year and will be meeting the merchant bankers shortly to arrive at an enterprise value.
“Our EBITA (earnings before interest, tax and amortisation) is between 8 and 10 percent,” Dinesh said.
Speaking about the latest acquisition he said Mesco is a specialised logistics company serving tool and die manufacturers in the automotive and industrial sector in the US.
“Mesco takeover gives us a new capability. We buy companies for customer access or adding new capability,” Dinesh said.
He said the company will now be able to leverage its seven-member China sourcing office much better.
About the future targets, Dinesh said handing medical equipments offers good potential.
According to him, Global Rush was not able to bring in the needed additional funds for TVS America and hence the company bought out its stakes.
TVS Logistics hopes to close this fiscal with a revenue of Rs.1,200 crore.
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