An SME-focused private equity fund Ambit Pragma today said that it has sold majority stake in Pune-based Spear Logistics to French multinational FM Logistic for an undisclosed amount.
Ambit Pragma, a small-cap growth and buyout fund with around USD 150 million under management, had invested in Spear in 2009, the fund said in a statement.
However, the company did not say how much it had invested on for how much the stake has been sold.
"Only about 8-10 per cent of the market is catered to by organised players like Spear Logistics. FM Logistics' global expertise in this domain will help Spear move to the next orbit of growth," Mangesh Pathak, a partner at Ambit Pragma said in a press note.
Since its inception in 2001, Spear operates in the contract logistics segment, offering long-term inventory and warehousing management business. The company has a pan-India presence, managing 75 warehouses (2.9 million sqfT) across 23 cities with over 1,600 employees.
Through the acquisition, FM Logistic aims to bring international practices, advanced working tools and latest technologies to the domestic market, the statement added.
Spear's FY16 revenues stood at roughly Rs 135 crore, up by over 5 times since 2009.
Operating for almost 50 years, FM Logistics is a leading provider of warehousing, transportation and co-packing services as its expertise spreads across consumer goods, retailing, perfume/cosmetics, industrial and health markets.
The contract logistics industry in the country is worth around USD3 billion and and the organised players in the segment is growing at 15-20 per cent annually.
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