KKR, Bain Bid for $1.6B Tyco’s South Korea Unit

Private equity firms such as KKR & Co LP and Bain Capital are among suitors which have placed initial bids for Tyco International Inc’s South Korean security systems unit.

Billion-dollar buyouts are rare in Asia, but security companies, when they come up for sale, tend to attract much interest from private equity firms as they are valued for their stable revenues.

A sale of ADT Caps, would follow Bain’s $3.4 billion purchase of European security firm Securitas Direct in 2011 and Blackstone Group’s (BX.N) acquisition of U.S. firm Vivint Inc for more than $2 billion last year.

Other bidders for ADT Caps include CVC Capital Partners CVC.UL as well as Hong Kong-based Affinity Equity Partners and South Korea’s MBK Partners, the sources said, declining to be identified as the process is confidential.

KKR, Bain, CVC and MBK declined to comment. Tyco and Affinity did not respond to emails seeking comment.

Morgan Stanley (MS.N) is advising Tyco on the sale, the sources said. Morgan Stanley declined to comment.

Source: Reuters


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