Complex Made Simple

The Carlyle Group sells stake in General Lighting Company to Philips

Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has entered into a definitive agreement to sell its 30 per cent stake in General Lighting Company (GLC) to Royal Philips (NYSE: PHG, AEX: PHIA). In addition, shareholders Alliance Holding Ltd (Alliance) and the Hejailan Group have also agreed to sell holdings alongside The Carlyle Group, resulting in a majority sale.

During Carlyle’s four year tenure at GLC, several successful initiatives were launched that helped transform GLC’s Saudi-focused business into an international lighting player active in more than thirty markets, including the acquisition of the largest lighting company in Malaysia, Davex and establishing an experienced African sales team and distributor network in key cities which allowed GLC to sell products in twelve African countries.

Production was doubled to 15 million units/year through the building of a third factory in Riyadh, dedicated to manufacturing high volume lighting products. The company also focused on attracting further experienced senior talent and counts world-class professionals in its leadership ranks.

Firas Nasir, Managing Director and Co-head of the Carlyle MENA team, said, “Through close collaboration with our partners and GLC’s talented management team Carlyle fostered a number of successful initiatives at the company, expanding geographic presence and enhancing operational capabilities. GLC is one of several investments Carlyle has made in the Middle East and Turkey and we continue to see excellent opportunities in the region.”

Carlyle’s investment in GLC was made through the Carlyle MENA Fund. Launched in 2007, the $500m fund targets investment opportunities in the Middle East, Turkey and North Africa. Other investments in the fund include: Bahcesehir Schools, Medical Park Hospital Group, Al-Nabil Food Industries Ltd. Co., Alamar Foods and Penti. Gibson Dunn advised The Carlyle Group and the Hejailan Group, Baker & McKenzie advised Alliance Holding Ltd, and GIB Capital advised all sellers. Moelis & Company and Norton Rose Fulbright advised Philips.

For more information please contact:
The Carlyle Group
Catherine Armstrong
Tel: +44 20 7894 1632