SCPE invests in TT International’s Indonesia business

SCPE will a take a 45% stake in a newly formed joint venture that has acquired the majority of TTI's retail electronics stores in Indonesia operating under the Electronic Solution brand. It has also acquired several third party-owned stores.

Prior to the deal, TTI owned and operated 18 Electronic Solution stores while further 41 were held by third parties. The new entity will have 39 stores in its portfolio. According to a statement, TTI intends to use the extra investment to expand its footprint with a view to making Electronic Solution the largest electronics retailer in Southeast Asia.

TTI is a retail group headquartered in Singapore. The company has a total of seven in-house retail brands covering consumer electronics, household appliances, and furniture. Its flagship consumer electronics brands are Akira and Teac.

TTI launched its Indonesian retail business in 2005. Electronic Solution offers audio and video products, home and office appliances, phones and tablets, camera and camcorder, IT products,and furniture. It also has an e-commerce platform.

According to BMI Research, Indonesia's consumer electronics market was worth around $16 billion in 2014 and is expected to grow to over $20 billion by 2019.

AVCJ Research data show this is SCPE's second's consumer electronics play in Indonesia. In 2012 it paid $52 million for a 13.5% stake in mobile phone distributor Trikomsel Oke. The PE firm ahs completed four deals in the country in total. The most recent was a $50 million investment in Emtek Group's healthcare business in May of last year. It has also backed power plant developer Navigat Group.

Cross-border M&A advisory BDA Partners helped broker the deal on behalf of TTI.

 

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• Topics
• Consumer
• Expansion
• Southeast Asia
• Consumer
• Growth capital
• Joint Venture
• Standard Chartered Private Equity
• Indonesia