Future Group close to a final deal to buy Vulcan Express for Rs 50 crore
, ET Bureau|
Updated: Jan 25, 2018, 08.26 AM IST
NEW DELHI: Future Supply Chain Solutions, the logistics company promoted by retail titan Kishore Biyani, is believed to have agreed to terms to acquire Vulcan Express, the logistics arm of Jasper Infotech, which also owns and operates online marketplace Snapdeal.
According to sources with direct knowledge of the developments, the all-cash transaction could be signed over the next 48 hours, with Vulcan fetching a price of Rs 40-50 crore. The deal will provide Jasper Infotech with further capital to shore up its core marketplace operations.
ET was the first to report in its edition dated April 27 last year that Future Supply Chain, along with a host of other potential buyers, had expressed interest in bidding for Snapdeal’s in-house logistics unit.
The logistics arm had also been evaluated by a number of bidders, including TVS Logistics, Allcargo and private equity firm Warburg Pincus, among others.
Emails sent to Jason Kothari, chief strategy and investment officer at Snapdeal, who is spearheading the transaction, and to Future Supply Chain Solutions and Future Group did not elicit any response till the time of going to press.
Formed in 2014, Vulcan Express provides end-to-end logistics services, including warehousing, line haul and transportation, last-mile distribution and reverse logistics, as well as quality control and refurbishment of goods.
Besides Snapdeal, which is its primary client, Vulcan has also recently partnered with global multinational package delivery giant and supply chain management solutions provider United Parcel Service. The company came into prominence after Snapdeal dropped third-party logistics player GoJavas as its primary logistics partner.
Earlier this month, ET had written that the acquisition of Vulcan Express by Biyani, could help the latter to integrate Future Group’s digital and brick-and-mortar retail businesses.
The sale of Vulcan by Snapdeal will be the second such by the online marketplace over the last six months, after it hived off its digital payments platform FreeCharge to Axis Bank.
Snapdeal has been shedding assets as it looks to focus on its core marketplace operations, after pulling out of a long-drawn, and often fractious, merger battle with larger rival Flipkart last year, which was being orchestrated by its largest stakeholder SoftBank.
Future Supply Chain has emerged as one of the country’s largest third-part and logistics firms.
According to sources with direct knowledge of the developments, the all-cash transaction could be signed over the next 48 hours, with Vulcan fetching a price of Rs 40-50 crore. The deal will provide Jasper Infotech with further capital to shore up its core marketplace operations.
ET was the first to report in its edition dated April 27 last year that Future Supply Chain, along with a host of other potential buyers, had expressed interest in bidding for Snapdeal’s in-house logistics unit.
The logistics arm had also been evaluated by a number of bidders, including TVS Logistics, Allcargo and private equity firm Warburg Pincus, among others.
Emails sent to Jason Kothari, chief strategy and investment officer at Snapdeal, who is spearheading the transaction, and to Future Supply Chain Solutions and Future Group did not elicit any response till the time of going to press.
Formed in 2014, Vulcan Express provides end-to-end logistics services, including warehousing, line haul and transportation, last-mile distribution and reverse logistics, as well as quality control and refurbishment of goods.
Besides Snapdeal, which is its primary client, Vulcan has also recently partnered with global multinational package delivery giant and supply chain management solutions provider United Parcel Service. The company came into prominence after Snapdeal dropped third-party logistics player GoJavas as its primary logistics partner.
Earlier this month, ET had written that the acquisition of Vulcan Express by Biyani, could help the latter to integrate Future Group’s digital and brick-and-mortar retail businesses.
The sale of Vulcan by Snapdeal will be the second such by the online marketplace over the last six months, after it hived off its digital payments platform FreeCharge to Axis Bank.
Snapdeal has been shedding assets as it looks to focus on its core marketplace operations, after pulling out of a long-drawn, and often fractious, merger battle with larger rival Flipkart last year, which was being orchestrated by its largest stakeholder SoftBank.
Future Supply Chain has emerged as one of the country’s largest third-part and logistics firms.
