<article>A consortium of private equity majors <a href="http://dealstreetasia.com/tag/kedaara" target="_blank" rel="noopener">Kedaara Capital </a>and <a href="http://dealstreetasia.com/tag/partners-group" target="_blank" rel="noopener">Partners Group</a> is acquiring retailer<a href="http://dealstreetasia.com/tag/vishal-mega" target="_blank" rel="noopener"> Vishal Mega Mart Pvt Ltd</a> from <a href="http://dealstreetasia.com/tag/tpg" target="_blank" rel="noopener">TPG Partners</a>.</article>

A consortium of private equity majors <a href="http://dealstreetasia.com/tag/kedaara" target="_blank" rel="noopener">Kedaara Capital </a>and <a href="http://dealstreetasia.com/tag/partners-group" target="_blank" rel="noopener">Partners Group</a> is acquiring retailer<a href="http://dealstreetasia.com/tag/vishal-mega" target="_blank" rel="noopener"> Vishal Mega Mart Pvt Ltd</a> from <a href="http://dealstreetasia.com/tag/tpg" target="_blank" rel="noopener">TPG Partners</a>.
While the financial details of the deal were not disclosed, media reports have pegged the deal size to be around Rs 5,000 crore ($735 million).
The duo has reportedly surpassed other contenders such as global private equity fund KKR &amp; Co. and Wipro founder Azim Premji’s family office PremjiInvest to seal the deal. Indian e-commerce major Flipkart was reportedly also in the fray for the acquisition.
The transaction is subject to regulatory approval and is expected to close later this year.
This is not the first time that Kedaara and Partners have teamed up for a deal. In 2016, the Indian and Swiss investment firms agreed to acquire housing finance arm of Au Financiers (India) Ltd.
Vishal Mega Mart is a prime example of a successful business turnaround. In 2011, the Vishal Mega Mart promoted by Ram Chandra Agrawal had piled up a debt of Rs 760 crore from lenders such as HDFC Bank, HSBC, ING Vysya Bank and State Bank of India.
Vishal Mega Mart was bought by TPG and Shriram Group in a distressed condition for Rs 70 crore in 2010. It is estimated that the value of the company has risen more than 70 times since then with TPG infusing over Rs 760 crore.
According to a joint statement, Partners Group and Kedaara Capital will work closely with Vishal Mega Mart&#8217;s management team to support it in the next phase of its growth, including expanding its presence, adding to its product assortment and maximizing supply chain efficiency.
While Vishal Mega Mart Pvt. Ltd (VMM), owned by TPG, runs the back-end operations, Airplaza Retail owned by Shriram Group runs the front-end stores.
Headquartered in Gurgaon, VMM is the franchisor of the Vishal Mega Mart brand and wholesale supplier to over 230 hypermarket stores across India, which are operated by a network of franchisees.
&#8220;After a period of already strong growth, VMM aims to maintain its pace and continue to build out its business in a sustainable manner,&#8221; said Gunender Kapur, CEO &amp; Managing Director of Vishal Mega Mart.
&#8220;The team at VMM has executed a stellar transformation of the business. We believe the Company offers a unique value proposition to an underserved customer segment and will continue to have strong tailwinds for a long time,&#8221; added Manas Tandon, Managing Director, Private Equity Asia, Partners Group.
The retail sector in India appears to have piqued investor interest again. Last year, Kedaara Capital had acquired about 10 per cent in Vedant Fashion, which owns ethnic brand Manyavar, for Rs 400 crore. Delhi-based V2 Retail Ltd, formerly known as Vishal Retail Ltd, had also raised $12 million from mid-market private equity fund Lighthouse Advisors India Pvt. Ltd last year.
Global retail giant Walmart&#8217;s plans to expand aggressively in the country after its mega $16-billion acquisition of Flipkart are also likely to heat up competition.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/kedaara-partners-vishal-mega-98127/" target="_blank" rel="noopener">India: Kedaara Capital, Partners set to acquire Vishal Mega Mart for $735m</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/india-premjiinvest-kkr-emerge-as-contenders-to-acquire-vishal-mega-mart-92851/" target="_blank" rel="noopener">India: PremjiInvest, KKR emerge as contenders to acquire Vishal Mega Mart</a>

While the financial details of the deal were not disclosed, media reports have pegged the deal size to be around Rs 5,000 crore ($735 million).

India: Kedaara, Partners Group to acquire Vishal Mega Mart from TPG

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India: Kedaara, Partners Group to acquire Vishal Mega Mart from TPG

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