KV Asia exits Malaysian grocery retailer to ICG

The size of the transaction was not disclosed. It is the first deal from ICG’s fourth Asia Pacific fund, which pursues mid-market sponsorless transactions alongside traditional mezzanine deals, primarily in the region’s more developed markets.

KV Asia acquired TFVM nearly five years ago, the opportunity arose from a succession planning issue, with younger members of the founding family not interested in assuming control. The private equity firm brought in an experienced management team, including a new CEO and CFO, that led various operational improvement initiatives. Notably, the business was positioned as a retailer of affordable fresh produce, with a focus on tier-two and tier-three cities.

During the ownership period, TFVM’s network has grown from 18 to 36 hypermarkets, while the geographical footprint has expanded from five to seven states.

“TF Value Mart has certainly delivered on the potential we originally saw in the business. We’ve witnessed the transformation of TF Value Mart from a family-owned business into one of the leading and fastest-growing grocery retailers in the country today,” said Jeremy Tan, a managing director at KV Asia, in a statement.

This is the fourth exit from the private equity firm’s debut fund, which closed in 2015 at $263 million. It has also sold premium chocolate producer Aalst Chocolate, Singapore nursing care provider Orange Valley Healthcare, and medical aesthetic treatments business DRx Group.

Last year, KV Asia also divested Asia Pacific Schools, a K-12 education provider, to Partners Group-owned International Schools Partnership. It took ownership of the company through the acquisition of Malaysia-based APIIT Education Group from Ekuinas for an enterprise valuation of MYR725 million ($180 million) in 2018. This was KV Asia’s largest-ever deal. APIIT’s core offering is tertiary education and the private equity firm retains those assets.

Sponsorless deals – known internally as corporate transactions – have emerged as a key focus area for ICG in recent years. The firm believes that Asia’s middle-market holds myriad opportunities for its flexible financing solutions, to be used by companies that don’t regard raising equity as an attractive option. Previous activity in Southeast Asia includes the purchase of Singapore's PSB Academy from Baring Private Equity Asia.

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• Topics
• Southeast Asia
• Trade sale
• Buyouts
• Consumer
• Malaysia
• KV Asia
• Intermediate Capital Asia Pacific