TVS Group, one of the leading business conglomerates in India, has today announced the acquisition of Universal Components UK Ltd, one of the leading wholesale distributors of commercial vehicles parts and accessories. TVS Group has already established its Parts Distribution Business in Asia. With this acquisition, TVS would now look to leverage synergies between UK, Europe & Asia and grow its business.
TVS has acquired a number of businesses within Europe, the most recent being Multipart Solutions Ltd in 2009. This investment in Universal Components brings its European Operations turnover to £120 million and employing around 500 people. TVS continues its strategy of growth in Europe by seeking and acquiring skills and exploring capabilities that it can learn from to support its growing Indian Business.
There are significant synergy benefits for both TVS and Universal Components. Universal Components will benefit by widening its range of components and sourcing from Low Cost Countries. Also, Universal Components and TVS’ relevance to both current and future suppliers will help further consolidate its relationship with them. Universal Components will further accelerate its growth not only in the trailer range but also in the commercial vehicles range. It is one of the growth drivers identified by Universal Components in UK and other parts of Europe.
"This is a perfect fit for us", says Richard Slee, TVS Europe CEO. "We are committed to increase our share of parts business for Britain’s intensively used fleet of commercial vehicles and buses and Universal Components fast tracks us up the league table of suppliers. I’m confident that we can make an even bigger impact moving forward".
David Kernahan, Managing Director for Universal said: "We are delighted to be under TVS ownership. Together we can continue our growth pattern and become a larger player in the International and Domestic CV sector".
Richard Slee went on to explain: "Our stated objective is to establish ourselves as a major force in European Parts Distribution. The Universal Components acquisition is evidence of that strategy and we fully intend to make further acquisitions in the future as well as grow our business organically.
Universal Components is headquartered in Sheffield and has 420 customers in the UK serviced by 650 distribution outlets. In 2011, the company had sales worth in excess of £20 million, 30% of which were exported – a growing percentage. The company sells both manufacturer-branded parts and its own range of Universal Components branded parts. It currently has in excess of 12,000 part numbers and plans to double this number in the next 3 to 5 years.
Recently, TVS announced the sale of Globe Transport Products, which was no longer viewed as core to the future trading strategy.