KKR Acquires Majority Stake in Leading Pallet Pooling Platform LEAP India
August 02 2023 - 2:00AM
Business Wire
KKR, a leading global investment firm, and LEAP India (‘LEAP’ or
the ‘Company’), a leading pallet pooling platform in India, today
announced the signing of definitive agreements under which funds
managed by KKR will acquire a majority stake in the Company.
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Founded in 2013 by Sunu Mathew, LEAP is a leading pallet pooling
platform in India, providing a wide range of innovative and
high-quality 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. Today, 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.
The investment builds on strong macroeconomic tailwinds in India
that include a focus on modernizing, automating, and optimizing
efficiencies in supply chains and logistics services. In addition,
sustainable logistics is expected to play a critical role in
driving India’s rapid economic growth over the next 25 years.1 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.
Ami Momaya, Director, Infrastructure at KKR, said, “We
are pleased to invest in LEAP, a standout leader in India’s pallet
pooling industry that will play an important role in driving the
country’s continued modernization and growth. 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, and we look forward to collaborating closely and
leveraging our deep infrastructure experience, operational
expertise and global networks to help LEAP achieve its next stage
of transformation.”
Sunu Mathew, Founder and Managing Director at LEAP India,
said, “From Day One, LEAP’s mission has been to provide quality
supply chain solutions to support our clients’ needs and contribute
to India’s modernization. We are proud of our growth and grateful
for the support received from our strategic partners and investors,
including our first investor Mayfield, that have helped us to scale
to where we are today. Going forward, we look to tap into KKR’s
global expertise to accelerate our growth and deliver impactful
solutions to our clients.”
KKR is making this investment as part of its Asia infrastructure
strategy. The acquisition of LEAP marks KKR’s latest infrastructure
investment in India. 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. Additional details of the transaction are not
disclosed.
Deloitte Touche Tohmatsu and Transaction Square acted as LEAP's
advisors and Anagram Partners acted as legal advisor to LEAP. EY
and KPMG acted as KKR’s advisors and AZB & Partners and Simpson
Thacher & Bartlett acted as legal advisors to KKR.
About LEAP India
LEAP, or Leading Enterprise in Asset Pooling, is a premier
provider of sustainable supply chain solutions in India.
Specializing in the design, manufacture, and management of wooden
pallets, reusable packaging, and containers, LEAP primarily
operates in the asset pooling space, offering cutting-edge supply
chain solutions to businesses throughout India.
Established in 2013, LEAP's mission is to provide cost-effective
and sustainable solutions that help businesses reduce waste and
lower costs while minimizing the environmental impact of their
operations. Through its commitment to innovation, integrity,
teamwork, customer service, and excellence, LEAP has earned a
reputation as a reliable partner for businesses seeking to optimize
their supply chain operations.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life, and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and
on Twitter @KKR_Co.
1 EY: Envisioning the future of Indian logistics@2047, April
2023:
https://www.ey.com/en_in/consulting/transforming-the-future-of-indian-logistics-sector
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Media
For LEAP India: Priti Vinchhi +91 8657504746
priti.vinchhi@leapindia.net
For KKR: Wei Jun Ong +65 6922 5813 WeiJun.Ong@kkr.com
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