Carlyle completes $3.9bn CommScope acquisition

The Carlyle Group has completed its $3.9bn acquisition of NYSE-listed wireless-equipment specialist CommScope.

In one of the larger privatisation deals recently, the Carlyle Group has completed its $3.9 billion acquisition of NYSE-listed wireless-equipment specialist CommScope.

The Carlyle Group paid $31.50 per share in the buyout, the same sum set when the deal was first announced on 22 October. That price represented a 36 percent premium over CommScope’s share price at that time.
Filings with the US Securities and Exchange Commission also show that CommScope plans to issue $2.5 billion in debt related to the buyout transaction. This includes a private placement of $1.5 billion in senior obligation notes that will mature in 2018 and an additional $1 billion in term loans.

Hedge funds Maverick Capital and Soros Fund Management were long-time shareholders in CommScope that stood to benefit from the buyout deal. Maverick owned a 9.8 percent stake in CommScope and Soros had held a 3.1 percent stake.

The CommScope deal is notable due to its sheer size. The buyout represents the largest US privatisation so far in 2011.  Some other recent large deals have stalled. For instance, the Carlyle Group saw its $619 million bid to buy Asian fast food operator QSR fall apart in November when its parent rejected the offer. The Blackstone Group’s aborted bid to buy the debt-laden power company Dynegy for $4.7 billion would have been among the largest privatisations had it been completed.