The Carlyle Group and BC Partners Agree to Acquire Hamilton Sundstrand Industrial from United Technologies for $3.46 Billion
July 25 2012 - 6:43PM
Business Wire
BC Partners, a leading international private equity firm, and
global alternative asset manager The Carlyle Group (NASDAQ: CG)
today announced a definitive agreement to acquire Hamilton
Sundstrand Industrial, a manufacturer of highly engineered,
mission-critical pumps and compressors for the global industrial,
infrastructure and energy markets, from United Technologies
Corporation (NYSE: UTX) for $3.46 billion. The transaction is
expected to close in the fourth quarter of 2012.
The investment will be funded in an equal partnership with
equity from BC European Capital IX and Carlyle Partners V L.P. as
well as third-party debt provided by a banking consortium.
Together, Carlyle and BC Partners plan to increase investment in
the company’s product development activities and to leverage the
global footprints of both firms to enable the company to accelerate
its growth.
Raymond Svider, Co-Chairman and Managing Partner of BC Partners,
said, “Hamilton Sundstrand Industrial is a world-class platform and
we are excited about the company’s significant growth prospects,
including in key emerging markets.”
Mark Fariborz, Partner at BC Partners, added, “We look forward
to working with our partners at Carlyle to invest behind Hamilton
Sundstrand Industrial and to help build a truly best-in-class
global industrial business.”
Brian Bernasek, Carlyle Managing Director, said, “We look
forward to working with the Hamilton Sundstrand Industrial team in
the transition to a stand-alone company. The company is well
positioned in its markets and will benefit from additional
investment to fund product development and growth initiatives.”
Vipul Amin, Principal of The Carlyle Group, said, “We believe
Hamilton Sundstrand Industrial’s strong product mix combined with
secular growth trends in the energy, chemicals and industrials
sectors create attractive long-term growth prospects for the
company.”
Carlyle and BC Partners have a history of successful industrial
investments including Carlyle’s ownership of Allison Transmission,
Rexnord Corporation and AxleTech International and BC Partners’
investments in Brenntag, SGB-SMIT Group and Interpump.
Hamilton Sundstrand Industrial comprises three businesses that
are among the global leaders in their respective industries.
Sundyne is a manufacturer of high-speed pumps and compressors used
principally for mission-critical, down-stream oil and gas and
chemical/industrial infrastructure. Milton Roy is a provider of
metering pumps used in chemical, oil and gas and water treatment
applications. Sullair is a global manufacturer of rotary screw air
compressors used to power air-driven industrial equipment and tools
used in the industrial manufacturing and the energy, mining and
chemicals industries. The company operates 19 manufacturing
facilities in the U.S., France, China, Australia, the U.K., Spain
and India.
Citigroup and RBC Capital Markets served as financial advisors
and Latham & Watkins served as legal advisor to BC Partners and
Carlyle in connection with the transaction, which is subject to
regulatory approval and customary closing conditions. External debt
financing commitments have been provided by Citigroup, Credit
Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and
UBS.
* * * * *
About BC Partners
BC Partners is a leading private equity firm with advised funds
of €12.6 billion ($16.4 billion). Established in 1986, BC Partners
has played an active role in developing the European buy-out market
for 25 years. BC Partners executives operate as an integrated team
through the firm’s offices in Europe and North America, acquiring
and developing businesses to create value in partnership with
management. Since inception, BC Partners has completed 79
investments in companies with a total enterprise value of €74
billion. The acquisition of Hamilton Sundstrand Industrial is the
third investment from BC Partners’ ninth fund which held its final
closing on €6.7 billion in February 2012. BC Partners has
significant expertise in the industrial sector. BC Partners Funds
have led investments in Brenntag, a global leader in chemical
distribution, and SGB-SMIT Group, a global manufacturer of power
transformers.
BC Partners – Website
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset
manager with approximately $159 billion of assets under management
in 94 active funds and 63 fund of fund vehicles as of March 31,
2012. Carlyle invests across four segments – Corporate Private
Equity, Real Assets, Global Market Strategies and Fund of Funds
Solutions – in Africa, Asia, Australia, Europe, the Middle East,
North America and South America. Carlyle has developed expertise in
various industries, including: aerospace, defense & government
services, consumer & retail, energy, financial services,
healthcare, industrial, technology & business services,
telecommunications & media and transportation. The Carlyle
Group employs approximately 1,300 people in 32 offices across six
continents.
The Carlyle Group – WebsiteThe Carlyle Group – YouTube
Channel
Carlyle (NASDAQ:CG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Carlyle (NASDAQ:CG)
Historical Stock Chart
From Jul 2023 to Jul 2024