The Chennai based auto component company acquires UK based Universal Components at 100 Cr for 90 percent stake in the later.

Chennai’s auto giant TVS group worth nearly $ 6.6 billion acquires 90 percent stake in Britain’s Universal Components (UCUK), at whopping bargain of Rs 100 Cr. The company plans to focus on the core domain of its UK acquisation’s marketing expertise and best practices for its customers, back at home. The acquisition was possible for the Indian company through a special purpose vehicle (SPV) called TVS Europe Distribution UK Ltd promoted by Srichakra Tyres and Associated Autoparts. According to R. Dinesh, Managing Director, TVS Logistics Services Ltd, the acquisition was funded by internal accruals. Gary Hadley and David Kernahan, who have owned Sheffield-based UCUK since 2004, have sold the business to TVS Europe Distribution. This is the second acquisition by the TVS Group in the UK after the buyout of Multipart Holdings in 2009. With the two acquisitions, the group's turnover will cross Rs 1,000 Cr in the UK and employ nearly 500 persons.

The new acquisition will help TVS develop its presence in the commercial and light commercial vehicles spare parts range in other Asian markets as well as help acquire best practices in dealing with its customers (small retailers). It will also further improve its forecast and planning capabilities and deploy state-of-the-art IT systems in India and other countries where the distribution of spare parts is undertaken including Sri Lanka. Universal Components has 420 customers in Britain who are serviced through 650 distribution outlets. The company sells parts worth approximately Rs.200 Cr and employs around 100 people selling manufacturer-branded parts and its own range of parts. In 2009, TVS Logistics Services acquired Multipart Holdings. With the buyout of Universal Components, the group's business in Europe is expected to cross Rs.1,000 Cr. (With inputs from internet- AarKay)