TPG in $1.3bn tertiary buyout

Rather than a planned IPO, TPG will buy American Tire from Investcorp, Berkshire Partners and Greenbriar Equity.

TPG Capital will acquire American Tire Distributors from Investcorp, Berkshire Partners and Greenbriar Equity Group, for $1.3 billion. Additional terms of the deal were not disclosed.

The North Carolina-based company, the largest independent tyre distributor in the US, had been on track for a $230 million public listing by its sponsors, which originally invested in the company in 2005. Investcorp acquired American Tire Distributors for $700 million from Charlesbank Capital, while Greenbriar and Berkshire reportedly invested $65 million for a combined 25.3 percent stake.

The transaction, which is expected to close in the second quarter, has fully committed financing from Bank of America, Barclays Capital, General Electric Capital, RBC Capital Markets, UBS and Wells Fargo Capital Finance.

TPG has been especially active in Asia in recent weeks. Last month, the firm agreed to sell its 23.9 percent stake in Parkway Holdings, a Singapore-listed provider of healthcare services, to Indian healthcare provider Fortis for $685.3 million. This deal marked TPG’s second large exit in Asia in recent months. It is estimated the firm received A$1.3 billion when it sold its stake in Myer Group, the Australian retail business, which raised A$2.2 billion through an initial public offering of shares in October 2009.