Latham & Watkins Advises The Carlyle Group on the Sale of ADT Caps to SK Telecom and MIRA for KRW 2,970 Billion

US$2.76 billion deal is among the largest private equity exits in South Korea.

16 May 2018

Latham & Watkins is advising global alternative asset manager The Carlyle Group (Carlyle, NASDAQ: CG) on its sale of ADT Caps, the second largest security services provider in Korea, to SK Telecom (SKT, KRW:017670) and Macquarie Infrastructure and Real Assets (MIRA) for KRW 2,970 billion (US$2.76 billion). SKT is the largest telecommunication operator in Korea and MIRA is one of the largest infrastructure asset managers globally. The transaction is expected to close in the second half of 2018. 

The Carlyle Group acquired ADT Caps through Carlyle Asia Partners IV and Carlyle Partners VI in 2014 from Tyco. During Carlyle’s ownership, ADT Caps drove top-line growth through new product introductions, cross-selling, and channel development, and improved operating efficiencies by reducing false signals per account and dispatches per account, while upgrading service quality through technological development. By partnering with Jinhwan Choi, CEO of ADT Caps and the management team, Carlyle has supported the business to become the most profitable security services player in Korea. 

Simon Cooke, Hong Kong partner and Global Co-Chair of the firm’s Private Equity Practice, commented: “We are delighted to partner once again with our valued and long-standing client The Carlyle Group on this strategically important transaction for them in the region, which is also one of the largest private equity exits we have seen coming out of Korea.” 

Seoul partner Steve Wonsuk Kang added: “Seoul is a key hub for commerce in East Asia with an increasingly active M&A market. This significant deal highlights Latham’s ability to work with Korean co-counsel to execute high end transactional mandates in the Korea market.”

The Latham & Watkins M&A team was led by Hong Kong partner Simon Cooke with associate Bonnie Tse. The team was supported by Seoul partner Steve Wonsuk Kang and Washington, D.C. partner David Brown and associate Tamara Kim.

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