The Carlyle Group is to acquire a 100 per cent stake each in Tyco Fire & Security Services Korea and its subsidiaries (ADT Caps, Capstec and ADT Security) from Tyco in a USD1.93bn deal.
The transaction is the largest private equity buyout deal in US dollar value in Korea since 2008. The transaction is subject to customary closing conditions including required regulatory approval and is expected to close in the second quarter of 2014.
ADT Korea is a provider of advanced security solutions in Korea, serving approximately 475,000 small-and-medium-sized businesses, commercial and residential customers. The business provides central monitoring services, with video surveillance and dispatch, access control and other customised security solutions as well as guarding services. The business is headquartered in Seoul, Korea, with approximately 7,500 employees and a nationwide network that includes 69 branches.
Sanghyun Lee, managing director on the Carlyle Asia buyout team, says: "ADT Korea is a highly stable and profitable business with attractive market positioning, strong brand power and excellent cash flow profile. We believe the Korean security services industry is under-penetrated, and growing awareness and needs for safety will anchor significant growth in the future. Korea is one of the few countries in Asia that generate stable economic growth along with consistent deal flow of large buyout transactions. Carlyle's investment in ADT Korea once again accentuates our long-standing commitment to Korea since the establishment of Carlyle Korea in 1999."
George Oliver, chief executive officer of Tyco, says: "ADT Korea is a healthy and profitable business and a leader in the South Korean market, with a strong management team and highly dedicated employees. We are grateful to them for their contributions to Tyco and know they will continue to thrive within The Carlyle Group."
Equity for the transaction will come from Carlyle Asia Partners IV and Carlyle Partners VI.
