Infrastructure News

KKR to acquire majority stake in LEAP India, Infra News, ET Infra

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MUMBAI: Global private equity investor KKR on Wednesday said that it has signed definitive agreements to acquire a majority stake in LEAP India, a pallet pooling platform in India, the PE investor said in a press statement.

Financial terms of the deal were not disclosed.

Economic Times first reported on 25 May that KKR’s infrastructure fund was in talks to acquire a majority stake in LEAP at an enterprise value of up to Rs 3,000 crore.

Founded in 2013 by Sunu Mathew, LEAP is a pallet pooling platform, providing a wide range of supply chain solutions including equipment pooling, returnable packaging, inventory management and movement, transportation, and repair and maintenance, to a diversified and large customer base across e-commerce, consumer durables, beverages, fast-moving consumer goods and automotive. It counts companies such as Amul, Nestle, PepsiCo, Coca-Cola, Amazon, Flipkart, LG, and Abbott among its clients.

The company operates a network of 21 warehouses and more than 3,500 customer locations, and manages more than 6 million total assets, including pallets and containers, across India for its customers.

“LEAP is supporting this shift by providing the critical assets needed for the manufacturing, storage, and movement of goods in supply chains and in so doing also helps companies to be better equipped to improve the environmental impact of their operations. The company has grown rapidly since its founding under the leadership of a talented management team,” said Ami Momaya, Director, Infrastructure at KKR.

The statement added that KKR’s investment builds on strong macroeconomic tailwinds in India that include a focus on modernizing, automating, and optimizing efficiencies in supply chains and logistics services. As Indian corporations increasingly look to focus on core operations and sustainably streamline logistics arrangements, there is significant opportunity for platforms such as LEAP to provide high-quality and efficient supply chain solutions, it added.

KKR is making this investment as part of its Asia infrastructure strategy.

Past transactions in the sector by KKR have included Serentica Renewables, a decarbonization platform that seeks to provide complex clean energy solutions for energy-intensive, hard-to-abate industries; Hero Future Energies, a leading independent power producer and the renewable energy arm of the Hero Group; Highways Infrastructure Trust, a roads infrastructure investment trust (InvIT); Virescent Infrastructure, a renewable energy platform in India; and IndiGrid, a leading infrastructure InvIT.

The transaction is expected to be completed by Q3 2023, subject to customary pre-closing and closing conditions.

Leap India reported a revenue of ₹211.34 crore in FY22, growing from ₹174 crore reported in the previous financial year, as per a report by credit rating agency India Ratings.

The company’s Ebitda in FY22 stood at ₹112.9 crore, against ₹84.2 crore in FY21, with Ebitda margin improving to 53.5% from 48.4%. Leap India’s profit stood at ₹26.4 crore in FY22, up from ₹8.3 crore in the previous year.

  • Published On Aug 2, 2023 at 03:22 PM IST

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