Tyco Int’l Selling Sth Korean Fire & Security Business For $US1.93 billion
Tyco Int’l plans to sell its South Korean fire and security business to private equity firm The Carlyle Group for $1.93 billion.
“ADT Korea is a highly stable and profitable business with attractive market positioning, strong brand power and excellent cash flow profile,” says Sanghyun Lee, managing director on the Carlyle Asia Buyout team.
“We believe the Korean security services industry is under-penetrated, and growing awareness and needs for safety will anchor significant growth in the future.”
The deal is expected to close in Tyco’s fiscal third quarter, the Associated Press reports. Based in Seoul, Tyco Fire & Security Services Korea Co. Ltd. and its subsidiaries comprise ADT Korea, which serves roughly 475,000 small-and-medium-sized businesses, commercial and residential customers.
Tyco Fire & Security Services Korea provides central monitoring services, with video surveillance and dispatch, access control and other customized security solutions as well as guarding services. The organization has 7,500 employees and 69 branches and is expected to generate $US600 million in revenue, 2014.
The sale represents “a unique opportunity to realize the value generated in the business over time and redeploy it to further enhance our portfolio and maximize shareholder value,” Tyco CEO George Oliver said in a statement.