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Tyco International Ltd narrows list of potential private equity acquirers for Caps Co- sources

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January 17
7:35 AM 2014

Sources told The Wall Street Journal that US industrial conglomerate Tyco International Ltd has narrowed down the list private equity firms who are potential acquirers of Caps Co, its security unit in South Korea. People familiar with the deal said the acquisition could be worth $1.4 billion.

The sources revealed that the race to buy the unit is among Kohlberg Kravis Roberts or KKR, Bain Capital, IMM PE and Carlyle Group, the report said. The people added that Bain Capital is working with Hahn & Co, a private equity firm based in South Korea for their offer. They also said that other companies thinking of making a bid for the asset are Affinity Equity Partners and the private equity arm of Standard Chartered.

The WSJ report said interest of private equity in the Korean unit comes at a time when Asian companies have cash piles amounting to around $120 billion and are looking for opportunities to invest them. Private equity funds are lured to opportunities in South Korea because of the maturity of the market and the occurrence of big deals were acquirers can obtain full control, like the purchase of Tyco's South Korean unit, the report said.

Late in 2013, Tyco gave an information memorandum to private equity companies in an attempt to divest the asset completely. The company's reason for selling the Korean company is not yet clear. The sales process is being handled by Morgan Stanley, the report said.

Information from Reuters revealed that Tyco International Ltd was incorporated in 1962 engaged in the business of making security products and services, valves and controls, fire protection and detection products and services as well as other industrial products. It has operations in the segments of ADT Worldwide, Flow Control, Fire Protection Services, Electrical and Metal Products, and Safety Products.

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