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Multipart sold to TVS
16/11/2009

Chorley aftermarket logistics business, Multipart, has been bought by Indian-based Group, TVS Logistics Services Limited.

Specialising in supplying spare parts and components to clients including Isuzu, Dennis Eagle, Optare, TVR and the Ministry of Defence, and supply chain solutions to the utility sector for Anglia Water Services, Multipart employs over 250 people and has annual turnover of over £63 million.

TVS Logistics Services (TVS) is a part of the US $5.0 billion TVS Group, one of the largest business groups and the largest automotive component manufacturers in India. The TVS Group was established in 1911 by Sri T V Sundram Iyengar and is one of India's largest industrial conglomerates. The group comprises of over 30 companies and employs more than 30,000 people.

TVS is established in the UK and European market as a strategic partner for managing international inbound supply chain 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. TVS will also benefit by providing inbound logistics services to Multipart's existing customer base. The acquisition offers TVS the opportunity to expand its European footprint with a recognised supply chain brand enabling it to become an end-to-end logistics solutions provider.

The latest deal follows the buyout of the business from South African-based Imperial Holdings in June 2008 which was led by directors, Chris Gateley and Paul Roberts.

Commenting on the deal, 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, corporate finance partner at Baker Tilly in Manchester, commented:

"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, head of corporate at Brabners Chaffe Street, said: “TVS is an excellent strategic partner for Multipart with the expertise, access to capital and geographical reach to accelerate the business' growth.

“After supporting the team in the management buyout and subsequent outsourcing agreement with Optare, we're delighted to have played a part in delivering a cross-border transaction like this which will enable Multipart to develop its presence in a truly global marketplace.”


For further information contact Tony Harper at Brabners Chaffe Street on 0161 836 8800

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