CommScope, a Carolina-based manufacturer of cabling for the telecommunications industry, has been bought by private equity group Carlyle.
The Carlyle Group offered CommScope shareholders US$31.50 a share, valuing the company at US$3.9bn. The price is a…
CommScope, a Carolina-based manufacturer of cabling for the telecommunications industry, has been bought by private equity group Carlyle.
The Carlyle Group offered CommScope shareholders US$31.50 a share, valuing the company at US$3.9bn. The price is a 36% premium over CommScope’s closing price on October 22, when talks over a potential buyout began.
Frank Drendel, chairman and CEO of CommScope, said: “We are proud to enter into this agreement with Carlyle and believe this transaction is in the best interest of CommScope and our stockholders.”
Upon completion of the transaction, Drendel and other members of CommScope’s executive management team will continue to lead the company.
The transaction has fully committed financing and is not subject to any condition with regard to the financing. Equity financing will be provided by Carlyle Partners V, a US$13.7bn US buyout fund, and Carlyle Europe Partners III, a E5.4bn (US$7.5bn) European buyout fund. Debt financing will be provided by JP Morgan.
Allen & Co is financial adviser and Gibson, Dunn & Crutcher is legal adviser to CommScope. JP Morgan is financial adviser to Carlyle with Alston & Bird and Latham & Watkins as legal advisers.
