Rico Logistics, an expanding British B2B same-day logistics provider and part of Indian-owned TVS Logistics, has acquired a majority stake in air freight supplier Circle Express to broaden its network and portfolio.
The courier group, which took over DHL Express UK’s same-day domestic business in 2013, said the Circle Express day to day operations and management will not change although upper management will have a new reporting structure into Rico.
Circle Express is one of the largest independent networks offering a collection and delivery service specifically targeted at the UK air freight forwarding industry and is the preferred UK Freight Distribution carrier for many International Freight Forwarders, according to Rico. It is the only UK operator fully licensed to transport all classes of hazardous materials.
With over 30 years experience, Circle Express has an annual turnover in excess of £29 million with a countrywide fleet of 300 vehicles operating out of 8 Aviation Security listed depots near the airports at Heathrow, Aberdeen, Birmingham, Exeter, Glasgow, Leeds, Manchester and a cross dock facility in Milton Park, Abingdon.
Sam Sharma, Rico Global CEO said: “We are proud to bring Circle Express into the Rico business, as it’s a fantastic opportunity to expand our Same Day capability, generating higher premium services across the UK. This acquisition will bring us some more depots to add to our existing 48 Same Day depots across the country and builds our larger vehicle and trunking capacity within our operations.”
He added: “This is another strategic acquisition for Rico which will continue in the future in order to strengthen Rico’s operational capability and Service portfolio across all its different lines of business both in the UK and Internationally.”
Tom Ryan, Circle Express Managing Director, commented: “This great opportunity will give Circle the financial backing and work collaboration opportunities to move forward and strengthen its position in our industry.
Rico, with revenues of £100 million, is part of TVS, a worldwide logistics group with $10 billion annual revenues and employing more than 30,000 people worldwide. The UK subsidiary operates over 40 branches around the UK and Ireland from where they control more than 1,400 courier vehicles each day. Rico, also presents in several European markets, describes itself as a market leader for courier, warehousing and Technical Field Engineering services for some of the world’s and UK’s largest blue-chip businesses.
The UK acquisition follows seven other acquisitions by Chennai-based TVS Logistics Services, including in the USA, the UK and Asia, over the last few years to build up its international footprint as it diversifies beyond its original automotive logistics business activities and heads for a planned IPO. TVS Logistics Services acquired Rico in 2013.
The group last year bought a majority stake in Australian supply chain solutions company Transtar to expand its presence in Asia, including better access to the Chinese market. TVS was already present in Singapore, Malaysia and Thailand. In India, TVS acquired consumer logistics company DIESL from the Tata Group to broaden its non-automotive customer base.
