Indian logistics company takes a majority stake in the Melbourne-based freight forwarder, through a Singapore joint venture
Indian company TVS Logistics Services has announced it will take a 51 per cent equity share of Australian freight forwarder Transtar International Freight.
The transaction will be completed through TVS’ Singapore joint venture, TVS Asianics Supply Chain Solutions, which is a tie-up between TVS Logistics Services, the Goldman Sachs Group, and private equity fund KKR and Company.
It will mark TVS’ first interest in Australia, having also established presences in Singapore, Thailand, and China.
Managing director R Dinesh says Transtar also has a comprehensive footprint in eastern Asia, including China.
“Transtar is an important addition for TVS Logistics as it not only strengthens our presence across the Asia-Pacific region, but also completes our service offering by including end-to-end freight forwarding solutions,” he says.
Indian media has reported TVS will pay A$42 million for the stake.
In a TVS Logistics Services press release, Transtar CEO Hank Meyer says the company will remain headquartered in Melbourne.
“We are delighted to partner with TVS Asianics and become part of the TVS Logistics global network,” he says
“We are excited about the ability to integrate into TVS’ expanding international network and significantly expand the scope of our end-to-end logistics products for our customers.”
Transtar has an established network of 16 offices throughout Asia, including a dedicated back-office support unit in Wuhan, China.
It’s sophisticated, cross-border IT management system was also considered an attractive buying point for TVS.
A spokesperson from Transtar in Australia was unable to confirm the deal today, but is seeking advice from directors who are currently overseas.