ADV Partners acquires heavy vehicles maker Tata International DLT

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Asia-focused private equity firm ADV Partners is acquiring a 50 per cent stake in heavy vehicles maker Tata International DLT Private Ltd (TIDLT), a joint venture between Tata International Ltd and Sri Lanka-based Dutch Lanka Trailer Manufacturers Ltd (DLT).

As part of the transaction, DLT is divesting its entire share in the joint venture company, TRF Ltd said in a BSE filing.

Besides, ADV is also fully acquiring DLT from Tata Steel-promoted TRF Ltd. The private equity firm is routing the transaction through its wholly owned subsidiary CANYON Point Investment Holdings Pte Ltd, TRF said in a BSE filing.

The cost of both the transactions together is estimated to be Rs 305 crore (about $43.5 million), subject to adjustment of actual debt in DLTM, the filing said. It is subject to approval of shareholders of TRF Limited.

Investment banking firm Singhi Advisors acted as the advisor to Tata International.

Established in 2005, TIDLT initially provided trailers to Tata Motors. Its current product portfolio comprises a wide range of trailers, semi-trailers, tippers and vehicle carriers. Its manufacturing facilities are located in Pune, Ajmer and Jamshedpur. The company reported net sales of Rs 355.67 crore for the financial year ended March 2018.

For Hong Kong-based ADV, the deal marks yet another bet in India.

It had last year acquired Gerdau Steel India Pvt Ltd from Brazil’s Gerdau SA for a total consideration of $120 million. Gerdau had announced the sale of its entire shareholding in its subsidiary Gerdau Hungria (which owned the India unit and assets) to Blue Coral Investments Holdings and Mountain Peak Investment Holdings, owned and managed by ADV Partners and affiliates.

The firm invested $105 million (around Rs 685 crore then) in infrastructure services provider Feedback Infra Pvt. Ltd. in March last year, after acquiring shares from two existing shareholders L&T Infra Finance and IDFC.

ADV is also an investor in eye-care chain Dr Agarwal’s Healthcare and white-goods maker Amber Enterprises India Ltd.

In December last year, ADV Partners had mopped up $597 million for its second pan-Asia vehicle – ADV Opportunities Fund II, DEALSTREETASIA reported. The private equity firm had raised $545 million for its debut fund in 2015 and now has a portfolio spread across India, China and Southeast Asia.