(Reuters) - Tyco International Ltd TYC.N, a maker of fire safety and security systems, said it would sell its South Korean security business to private equity firm Carlyle Group (CG.O) for $1.93 billion and take a charge in the second quarter.
The company also said its board had approved an additional share repurchase program of $1.75 billion, increasing the total authorization to $2 billion.
Tyco put ADT Korea up for sale last year, attracting bids from Affinity Equity Partners, Bain Capital, KKR & Co (KKR.N) and South Korea’s MBK Partners as well as Carlyle, Reuters previously reported.
This is the second big private equity transaction in South Korea this year. KKR and Affinity Equity Partners sold Oriental Brewery to Anheuser-Busch InBev SA (ABI.BR) in January for $5.8 billion.
ADT Korea offers central monitoring, access control, video surveillance control and other integrated security services, Tyco said, adding that the transaction was expected to close in the second quarter.
Tyco said it cut its second-quarter profit forecast to 39-41 cents per share from its earlier forecast of 44-46 cents to reflect the sale of the business.
Analysts on average were expecting earnings of 46 cents per share, according to Thomson Reuters I/B/E/S.
Carlyle Group said it had secured committed debt financing from Korea Exchange Bank, Kookmin Bank, Industrial Bank of Korea, Korea Investment & Securities and UBS AG.
Morgan Stanley was Tyco’s financial adviser while Simpson Thacher & Bartlett LLP and Kim & Chang acted as legal counsel. Legal firms Clifford Chance and Lee & Ko advised Carlyle Group.
Reporting by Rohit T. K. in Bangalore; Editing by Sriraj Kalluvila and Ted Kerr