TVS Europe, part of the South Indian business conglomerate $6.6 billion TVS Group has acquired UK-based wholesaler and distributor of commercial vehicle parts -- Universal Components for Rs 100 crore, making it one of the company's largest acquisitions outside India.
The acquisition was made by floating a Special Purpose Vehicle -- TVS Europe Distribution Ltd, promoted by TVS Group Companies' Sri Chakra and Associated Autoparts, TVS and Son's Joint Managing Director R Dinesh told reporters here.
As part of the acquisition, TVS Europe Distribution has purchased 90% of Universal Components UK Ltd, he said.
"The total investments for the acquisition is Rs 100 crore. It was made through the Special Purpose Vehicle into Universal Components," Dinesh said.
He said the acquisition would help TVS develop its presence in the commercial and Light Commercial Vehicle spare parts range in other Asian markets and help acquire best practices. "We have the capabilities to handle such businesses, but not the expertise to handle the business. It will take some time".
Dinesh said the present Managing Director of Universal Components David Kernahan would continue to head the business, sharing his expertise with TVS.
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Recalling that TVS Group already made acquisitions in the UK through TVS Logistics Services in the logistics business, he said this acquisition would help consolidate their position in the 'distribution' of parts business. "We are taking the same route which we took for logistics business in 2009."
Kernahan termed the acquisition as a 'perfect fit' for UK and India and said they aimed to double revenues from 20 million pounds to 40 million pounds in three to five years.
"For me, TVS and Universal Components make an excellent combination," he said on the tie-up.
Post the tie-up, he said they planned to take the 14,000 line products in commercial and light commercial vehicle industry to 25,000 units in future.