The private equity firm Carlyle Group said on Monday that it had agreed to acquire Tyco International’s South Korean security business for about $1.9 billion in cash.
The deal to acquire the Tyco Fire and Security Services Korea Company and its subsidiaries, including ADT Korea, is the largest private equity buyout deal in South Korea since 2008, Carlyle said.
“We believe the Korean security services industry is underpenetrated, and growing awareness and needs for safety will anchor significant growth in the future,†said Sanghyun Lee, a Carlyle managing director.
The transaction is subject to regulatory approval and is expected to close in the second quarter of 2014, Carlyle said.
ADT Korea provides security services to 475,000 business and residential customers, 82 percent of which are small or midsize businesses. It has about 7,500 employees and posted revenue of about $560 million in its 2013 fiscal year.
“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,†said George R. Oliver, Tyco’s chief executive. “We are grateful to them for their contributions to Tyco and know they will continue to thrive within the Carlyle Group.â€
In 2012, Tyco spun off the ADT Corporation, its home security monitoring business in the United States and Canada.
Korea Exchange Bank, Kookmin Bank, Industrial Bank of Korea, Korea Investment and Securities and UBS have agreed to provide financing to Carlyle for the deal, while Morgan Stanley acted as Tyco’s financial adviser.
Clifford Chance and Lee & Ko are serving as legal advisers to Carlyle, while Simpson Thacher & Bartlett and Kim & Chang were Tyco’s legal advisers.
