Mahindra Logistics to acquire Rivigo's B2B express business for Rs225 crore; stock spurts ~4.5%

27 Sep 2022 , 09:16 AM

Mahindra Logistics Ltd. and Rivigo Services Private Limited (RSPL) announced that they had reached a deal for MLL to buy RSPL’s B2B express business. According to the terms of the deal, MLL will acquire the express company, including the clients, team, and assets of RPSL’s B2B express business, RSPL’s technology platform, and the Rivigo brand, via a Business Transfer Agreement (BTA).

RSPL will retain ownership of its truck fleet as well as the rights to full truck load (FTL) operations.

MLL, one of India’s top integrated logistics businesses, is committed to offering customers with supply chain solutions that include 3PL, FTL transportation, warehousing, cross-border logistics, last mile, and B2B express logistics. Rivigo’s strong network, technology, and process skills will be used to supplement MLL’s current B2B express operation.

The company stated in a filing that the cost of acquisition is Rs225 crore, subject to the terms of BTA.

Rivigo, situated in Gurgaon, offers a pan-India B2B express network, a large customer base, and a full-service technology suite. Rivigo’s B2B express network now serves over 19,000 pin codes across the country. Their 250+ processing centres and branches, spanning over 1.5 million square feet, will significantly strengthen MLL’s express business potential.

At around 9.18 AM, Mahindra Logistics was trading at Rs527 up by 4.45% from its previous closing of Rs504.55 on the BSE.

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