Bain Capital and TPG Growth have invested $86 million in Lilliput Kidswear Pvt Ltd, a manufacturer, exporter, and owner of the Lilliput kidswear brand for an undisclosed significant minority stake in the company. Bain Capital which has led the round has put in $60 million and TPG the remaining amount of $26 million. The individual stakes held by the private equity funds is not known.
This equity infusion into the company will also see Everstone Capital exiting their early stage growth investment in the company. In 2006, the private equity fund picked up a 24% stake in the company for $10 million.Lilliput is a manufacturer and exporter of children’s wear to the top kidswear brands across UK and US since 1991.
Its clientele includes Gap, Next, Carter’s and Old Navy. Its domestic business includes presence of its brand in leading stores like Shopper’s Stop, Lifestyle, Central, Globus, and Pantaloon. This will be the second deal for Bain Capital which made its debut deal by picking up stakes in publicly listed Himadri Chemicals.
TPG Growth manages over $2.5 billion of capital and is focussed on sectors such as technology, life sciences, biotechnology, renewable energy and retail companies. It targets investments in the range of $20-150 million.
This is not the first time that the private equity firm has invested in a retail chain. The parent firm, TPG, has earlier proposed to take over the management of the Delhi-headquartered Vishal Retail. The private equity firm which is increasing its exposure in consumer discretionary spending also has an exposure in consumer finance through its indirect investments in Shriram City Union Finance.
Ernst and Young was the sole adviser to Lilliput and Everstone Capital for this transaction.
Other retail chains which have raised private equity money in the past include Koutons Retail, eYantra Apparels Ltd, The Mobile Store, Alok Retail India, WS retail services and Home Solutions Retail.