TPG in £200m Victoria Plumb deal

The deal for the online retailer comes as TPG looks to raise an interim fund of between $1.6bn and $2bn.

TPG Capital has backed UK-based online and mail bathroom retailer Victoria Plumb, according to a statement.

Financial details of the transaction were undisclosed, but a source close to the matter said TPG has invested approximately £200 million (€241 million, $333 million). TPG declined to comment.

TPG will partner with the Victoria Plumb founding family to help the company accelerate its growth, the firm said in the statement.

Hull-headquartered Victoria Plumb, which was established in 1999, is one of the largest retailers of bathroom products and furniture in the UK. TPG plans to build the business into “one of the leading e-commerce companies in the UK,” according to Malte Janzarik, a principal at TPG.

KPMG advised the founding family on the transaction, while Cleary Gottlieb Steen & Hamilton advised TPG on the legal side.

The deal comes after a relatively busy start of the year for TPG. In March, it acquired insurance provider The Warranty Group for $1.5 billion from Onex Corporation. In February, TPG teamed up with Shanghai Fosun Pharmaceutical Group, a subsidiary of Chinese corporate giant Fosun International to make a $369 million take-private offer for China-based healthcare provider Chindex. In the same month, TPG divested approximately 11 percent of its 49.8 percent stake in Russian superstore Lenta, when it listed the business on the London Stock Exchange together with VTB Capital, raising $952 million.

TPG is currently raising its Capital Partners Strategic Account, a buyout fund which will serve as a bridge between the expiration of TPG VI and the activation of TPG VII. The interim fund, which is expected to raise between $1.6 billion and $2 billion, will allow TPG to continue investing after its $19 billion Fund VI has been fully deployed.

Fund VI received a one-year fund extension in August 2013, which means its investment period will now end in February 2015. TPG needed at least two-thirds of the LPs in the fund to approve the extension, which included a provision that TPG would offset the management fee with 100 percent of any transaction fees on deals done during the extension period. Fund VI’s original transaction fee offset was 65 percent.

In February, The Washington State Investment Board said it would invest up to $600 million in TPG’s interim fund, PEI reported earlier.