12 January 2012

India Equity Partners Acquires TNT Express' Domestic Road Business

Private equity firm India Equity Partners has acquired the domestic road express business of TNT India, through its logistics subsidiary. The new entity would be led by Abhik Mitra, previously the Managing Director at TNT India.

 Founded in 2006, IEP is an independent private equity firm, which focuses on control or significant minority investments in consumer-focused industries and infrastructure services. It has over $350 million under management, raised from an international group of endowments, financial institutions, family offices and high net worth individuals (HNIs). It has offices in Mumbai, Mauritius, and New York. Its portfolio consists of 15 companies, which include ColdEX, Bharti Infratel, Amtek, Babaj, Ikya, Fourcee Infrastructure Equipments, IL&FS Education & Technology Services, and many others.

Sid Khanna, Chairman and Managing Director, IEP Fund Advisors says, “IEP is excited by this acquisition and it is consistent with our strategy of investing in logistics and infrastructure services. In the logistics sectors, we see tremendous growth opportunities for mid-sized companies with the required management and capital, to scale rapidly and become market leaders.”

TNT Express was the third control deal for IEP in 2011 and has a big network of diversified customers. IEP and TNT will work together to ensure a seamless transition. The senior management and most employees of TNT's road express business will move to the new IEP entity, which would become TNT Express' preferred partner for domestic road delivery in India.

"This investment is consistent with IEP's differentiated investment strategy of control platform investments and portfolio value-add. IEP brings together outstanding management talent, the necessary financial capital, high quality governance and best-in-class management processes to build platforms that acquire companies to drive growth and become market leaders. We see TNT's domestic road express business as a first step in building out our Logistics platform and intend to pursue other exciting investment opportunities in this sector," says KK Iyer, Managing Director, IEP Fund Advisors.