Global alternative asset manager The Carlyle Group (NASDAQ:CG) has agreed to acquire a 100% stake each in Tyco Fire & Security Services Korea Co. Ltd. and its subsidiaries (ADT Caps Co., Ltd., Capstec Co., Ltd. and ADT Security Co., Ltd.) that form and operate the Company’s Korean security business (“ADT Korea”), from Tyco (NYSE:TYC), the world’s largest pure-play fire protection and security company, in a cash transaction valued at approximately $1.93 billion. 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 customized 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, said, “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.”
Cedric Bobo, Principal on the Carlyle US Buyout team, said, “This is a great opportunity to create value by leveraging Carlyle’s deep industry expertise and global network to support future growth and realize the Company’s full potential as it transitions into a standalone company.”