Partners, Kedaara to buy Vishal Mega Mart from TPG

Private equity firms Partners Group and Kedaara Capital Fund will acquire value retail chain Vishal Mega Mart (VMM) from PE firm TPG.

The deal size was not disclosed but as per market sources it is expected to be around Rs 5,000 crore. VMM has over 229 stores in 110 cities and towns across the country, according to the company's website. The Gurgaon-based firm 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.

Partners Group Private Equity Asia Managing Director Manas Tandon said: "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."

VMM MD and CEO Gunender Kapur said: "We believe we have found the ideal partners for this ambitious next phase (of growth) in Partners Group and Kedaara Capital and expect to benefit from their combined track records of working with fast-growing consumer businesses."

Partners Group said the value creation initiatives will focus on expanding VMM's presence, adding to its product assortment and maximising supply chain. The transaction is subject to regulatory approval and is expected to close by year end. Swiss-based Partners Group is a global private markets investment management firm with over $74 billion in investment programmes under management in private equity, private real estate, private infrastructure and private debt.