Kedaara, Partners Group to complete Vishal Mega Mart acquisition by year end
A consortium of Kedaara Capital and Switzerland-based Partners Group is set to buy Vishal Mega Mart for Rs5,000 crore from TPG Capital and Shriram Group
Mumbai: A consortium of private equity firm Kedaara Capital and Partners Group said it will buy Vishal Mega Mart Pvt. Ltd, owned by TPG Capital and Shriram Group, for an undisclosed sum.
The transaction is expected to close later this year, the announcement said. Financial details of the deal were not disclosed.
On 19 May, Mint had reported that a consortium of Kedaara Capital and Switzerland-based Partners Group is set to buy Vishal Mega Mart for Rs5,000 crore from TPG Capital and Shriram Group.
“The consortium is planning to acquire the firm with the majority of the investment coming from Partners Group. Kedaara, being an India-registered alternative investment fund, will be treated as the local partner,” the report said.
“Led by a strong execution focused team and supported by secular macro drivers, Vishal Mega Mart (Vishal Mega Mart) has developed a highly replicable and scalable model offering consumers an aspirational assortment at compelling value through its franchisee network. We are delighted that, having essayed a remarkable evolution of the Vishal Mega Mart business thus far, Gunender has chosen to join hands with Kedaara and Partners Group for the next phase of Vishal Mega Mart’s growth to reinforce its position as a market-leading business,” said Nishant Sharma, co-founder and partner, Kedaara Capital. (Gunender Kapur is chief executive and managing director of Vishal Mega Mart.)
Following the acquisition, the consortium will work closely with the Vishal Mega Mart management team to support company’s growth, expand the business and maximize its supply chain efficiency.
“The team at Vishal Mega Mart 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. Having followed Gunender’s success over the last several years, we are excited that he has chosen to partner with Partners Group and Kedaara for the next stage of Vishal Mega Mart’s journey,” said Manas Tandon, managing director, private equity Asia, Partners Group.
Based in Gurgaon, Vishal Mega Mart is the wholesale supplier of apparel, footwear and lifestyle accessories, grocery products and general merchandise to over 230 hypermarket stores across India. The company was bought by TPG and Shriram Group in a distress sale for Rs70 crore in 2010.
“After a period of already strong growth, Vishal Mega Mart aims to maintain its pace and continue to build out its business in a sustainable manner. We believe we have found the ideal partners for this ambitious next phase in Partners Group and Kedaara Capital and expect to benefit from their combined track records of working with fast-growing consumer businesses, including their prior collaboration on Aavas Financiers, which services the same underserved client group in India,” said Kapur of Vishal Mega Mart.