Indian conglomerate swoops on Multipart
LANCASHIRE logistics company Multipart, a £63m turnover parts supplier, has been bought by an Indian company.
Chorley-based Multipart, which was only bought by its management from its South African parent in June last year, has been snapped up by Chennai-based TVS Logistics Services.
Multipart, which began life as the parts distribution business of Leyland Trucks, now supplies spare parts and components to vehicle makers LDV, Isuzu, Dennis, Optare Eagle, TVR and the Ministry of Defence.
TVS Logistics Services is a part of the $5bn TVS Group, one of the largest business groups and the largest automotive component manufacturers in India.
The TVS Group comprises of more than 30 companies, employing 30,000 people.
It is already established in the UK and European market as a strategic partner for customers in the automotive and engineering industry.
By acquiring Multipart, TVS will be able to provide the aftermarket services to its existing anchor customers in the UK, Europe and India.
According to reports in the Indian media, RVS will invest £16m to grow Multipart, which employs 250 people.
Multipart managing director Chris Gateley said: “This marks yet another significant milestone in the history of Multipart.
“The work we have done since acquiring the business last year in successfully winning new business and restructuring to compete more effectively in the changing market, has proved that despite what have been challenging economic conditions, demand for its services remains high.
“This deal provides Multipart with a robust financial and wider service range platform for domestic and international growth and I have no doubt that TVS will capitalise on it.”
Mr R Dinesh, managing director at TVS Logistics Services said: “This will help support our customers who want to outsource their after-market supply chain in Europe, as well as provide value added services to the existing customers who want to serve their European clients from India.”
The shareholders were advised by Gary Houghton and James Wild at Baker Tilly corporate finance in Manchester. A team led by Tony Harper, head of corporate at Brabners Chaffe Street provided legal support to the shareholders.
Gary Houghton said: “We are delighted to have advised the shareholders on this transaction, following on from our role in the management buyout.
“The deal provides further evidence that high quality North West businesses are proving to be attractive to overseas investors.”
Tony Harper added: “TVS is an excellent strategic partner for Multipart with the expertise, access to capital and geographical reach to accelerate the business’ growth.”
