TPG and Shriram Group today announced that they have closed the transactions to acquire the wholesale & franchise and the retail undertaking of Vishal Retail, respectively.
TPG Wholesale Private has acquired the wholesale and franchise undertaking of Vishal Retail while Airplaza Retail Holdings, a part of the Shriram Group, has acquired the retail undertaking of Vishal Retail.
TPG will invest Rs 200 crore into TPG Wholesale to fund the turnaround of its business and future growth. These transactions are the result of Vishal Retail’s debt restructuring, which started in November 2009 under a CDR process led by SBI on behalf of certain lenders of Vishal Retail.
These transactions have been approved by the board and shareholders of Vishal Retail and accepted by all of the bank creditors of Vishal Retail.
TPG Wholesale will operate the back-end sourcing, merchandising, logistics and franchise operations while Airplaza Retail will operate the retail shops alongside the other franchisee partners currently operating Vishal-branded stores.
TPG Wholesale shall be the franchisor to Airplaza Retail and the existing franchisee partners of the business.
The Vishal Megamart-branded retail operations will comprise over 150 stores throughout the country operated by both AirPlaza and over 20 other franchise partners. A majority of stores are in Tier 2-3 towns and cities around the country.
TPG was advised by E&Y (investment advisors) and Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners (legal advisors). Shriram Group was advised by Trilegal Partners.
