KKR, Bain among bidders for Tyco's $1.6 billion South Korea unit: report
09 Dec 2013
Private equity firms KKR & Co LP and Bain Capital are among several bidders looking to acquire Tyco International Inc's South Korean security systems unit, a business valued at about $1.6 billion, reports quoting sources close to the matter said.
Toyo is selling its ADT Caps unit, which offers central monitoring services, access control, video surveillance and other integrated security solutions.
Tyco's security installation and services business sells, designs, installs and maintains integrated systems to detect intrusion, control access and react to movement, fire, smoke, flooding, environmental conditions, industrial processes and other hazards.
Other bidders for ADT Caps include CVC Capital Partners as well as Hong Kong-based Affinity Equity Partners and South Korea's MBK Partners, the reports said.
Bain had acquired European security firm Securitas Direct for $3.4 billion in 2011 while Blackstone Group had last year acquired US firm Vivint Inc for more than $2 billion.
Morgan Stanley is advising Tyco on the sale, the sources said. Morgan Stanley declined to comment.
Tyco, a provider of commercial fire and security systems, became a much smaller company after the diversified conglomerate Tyco International split up last year. Its North American home security arm, ADT, became a separate company and its former flow control unit merged with Pentair Ltd.
ADT Caps had earnings before interest, depreciation and amortization of $160 million as of the end of September 2013. The business is expected to fetch around $1.6 billion, based on a ten times EBITDA multiple, the sources said.