Adani Logistics, a subsidiary of Adani Ports and SEZ, will acquire a majority stake in India’s largest cold chain logistics provider Snowman Logistics. The company will first acquire a 40.25% stake from Gateway Distriparks for about ₹296 crores. It will then make an open offer to Snowman’s public shareholders for as much as 26% more, spending up to ₹191 crores.
The acquisition is subject to customary conditions precedent and is likely to close by March 31, 2020.
“The acquisition is in line with our strategy and vision to be a leader in providing integrated logistics services in India and moving from port gate to customer gate,” said Karan Adani, CEO at Adani Ports.
Adani Ports and Adani Logistics are part of a conglomerate led by billionaire Gautam Adani. Adani Ports is the largest port operator in India and runs 10 ports and terminals in India. Adani Logistics operates five logistics parks and has warehousing space of 400,000 sq ft. It aims to have at least 15 logistics parks and 5 million sq ft of warehouse space by 2025.
Snowman Logistics provides integrated cold-chain logistics services including warehousing and distribution. The company has a pan-India presence with 31 temperature-controlled warehouses at 15 locations. Its clients include meat and seafood suppliers, quick-service restaurants and drugmakers.