Asia-focussed private equity firm ADV Partners is acquiring heavy vehicles manufacturer Tata International DLT Pvt. Ltd, a joint venture between Tata Group company Tata International Ltd and Dutch Lanka Trailer Manufacturers Ltd.
Separately, the PE firm is also acquiring a 100% stake in Sri Lanka-based Dutch Lanka Trailer Manufacturers from Tata Steel-promoted TRF Ltd.
ADV will execute the deals via its wholly-owned subsidiary Canyon Point Investment Holdings Pte Ltd, TRF Ltd said in a stock-exchange filing.
The combined value of the two transactions is Rs 305 crore (around $43.85 million at current exchange rates) and is subject to adjustment of actual debt in DLTM. The transactions are subject to regulatory approval.
Mumbai-based investment banking firm Singhi Advisors acted as the sole adviser to Tata International.
Tata International DLT, which began operations in 2006, manufactures commercial vehicles such as trailers, tippers and vehicle carriers. The company, which has four plants located across India, reported net sales of Rs 355.67 crore for the financial year ended March 2018. The company also exports its products to markets in Asia, the Middle East and Africa through DLTM.
The proposed acquisition of Tata International DLT represents another India bet for Hong Kong-based ADV Partners.
The company has spread its investments in India across various sectors. Its local bets include eye-care chain Dr Agarwal’s Healthcare and white-goods maker Amber Enterprises India Ltd.
The firm struck at least three India-based deals in 2018. In March last year, it invested $105 million (around Rs 685 crore then) in infrastructure services provider Feedback Infra Pvt. Ltd. In August, it invested an undisclosed sum in Kolkata-based laboratory plasticware manufacturer Tarsons Products Pvt. Ltd.
That same month, it also signed an agreement to acquire the Indian operations of Brazilian specialty steel producer Gerdau for $120 million (around Rs 840 crore then).
