Kedaara, Partners Group to buy India's Vishal Mega Mart

Kedaara is investing via its second India-focused fund, which closed at a hard cap of $750 million last year. Partners Group's latest direct private equity fund closed last year at EUR6 billion ($7 billion) and has already partnered with Kedaara in India on the acquisition of housing finance specialist Aavas Financiers.

The two private equity firms plan on working with Vishal's management team to support future growth and expand the company footprint while adding to the product offering and improving supply chain efficiency. The acquisition is expected to be finalized within the year.

"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," Manas Tandon, a managing director for Asia private equity at Partners Group, said in a statement.

Vishal is a branded wholesale supplier to more than 230 hypermarket stores across India, which are operated by a network of franchisees. These stores aim to combine a private label, fast-fashion offering with a variety of general merchandise and food products. More than 60% of Vishal-branded franchised hypermarkets are in cities that have a population of less than one million, where they serve as a destination for making aspirational household and fashion categories affordable.

TPG acquired the Vishal's wholesale retail business in 2011 after a protracted approvals process. At the time, the company had a portfolio of 171 stores and was struggling with debt. The GP reportedly paid INR700 million (then $15.5 million) for the business, representing a discount to its estimated value around INR1 billion at the time.

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• Topics
• South Asia
• Consumer
• Buyouts
• Trade sale
• India
• Partners Group
• Kedaara Capital
• TPG Capital