The Carlyle Group Sells Stake in General Lighting Company to Philips

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Exit is Carlyle’s first in the Kingdom of Saudi Arabia

Riyadh, Kingdom of Saudi Arabia 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.

“As a global leader in energy efficient LED lighting products, systems and services we look forward to joining forces with GLC to provide innovative, meaningful and energy efficient solutions. GLC’s strong local market knowledge and meaningful customer insights, combined with our technological innovations, will enable us to create highly sustainable solutions that support the Kingdom’s vision to reduce energy consumption in the country,” said Eric Rondolat, CEO of Philips Lighting.

During Carlyle’s four year tenure at GLC, several successful initiatives were launched that helped transform this Saudi-focused business into an international lighting player active in more than thirty markets.  Through the acquisition of the largest lighting company in Malaysia, Davex, GLC added another competitive manufacturing platform as well as access to a number of fast-growing economies in SE Asia.  Establishing an experienced African sales team and identifying distributors in key cities 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. Key joint ventures were established enabling GLC to secure essential, next-generation LED technology.  The company also focused on bringing in experienced senior talent and now counts a number of world-class professionals in its leadership ranks. 

Commenting on the transaction, Abdullah Al-Hobayb, Chairman and Co-owner of GLC said: “Carlyle has been a valuable partner to us in developing this business into a more robust enterprise. We look forward to building on this success as we look to our future partnership with Philips.”

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 $500 million 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.

Gulf International Bank and Gibson Dunn advised the sellers.  Moelis & Company and Norton Rose Fulbright advised the buyer.

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About General Lighting Company
General Lighting Company specializes in the production and provision of solutions in the field of indoor and outdoor lighting fixtures.  It serves the lighting fixtures market in the Kingdom of Saudi Arabia, in the Middle East, Africa and South East Asia.  General Lighting Company carries out its activities directly through its four subsidiaries, Saudi Lighting, Nardeen, Inara and Davex. Saudi Lighting Company is the largest among the four subsidiaries, focusing on the sale of indoor and outdoor lighting products as well as industrial lighting products for the projects market and the retail sector.  Nardeen is the second largest company in terms of sales, and also produces and sells indoor, outdoor and industrial lighting fixtures for the projects market and the retail sector.  Nardeen also imports and sells international lighting products as part of its trading activities.  Inara is specialized in the production of lighting products and the sale of imported lighting products throughout the Kingdom of Saudi Arabia.  Davex is the largest lighting company in Malaysia producing in Penang, Malaysia and selling indoor lighting fixtures in a number of markets including Malaysia, Singapore, Australia, Indonesia, and Vietnam.

Carlyle MENA Partners 
The Carlyle MENA team was established in 2007 to make investments in Turkey, North Africa, the Cooperation Council for the Arab States of the Gulf and the Northern Mediterranean regions. The Carlyle MENA team aims to invest primarily in healthy and growing companies and leverages Carlyle's expertise in various sectors including but not limited to food, energy, financial services, consumer & retail, healthcare, education, manufacturing, telecommunication and transportation.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with approximately $189 billion of assets under management across 118 funds and 100 fund of funds vehicles as of December 31, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments Corporate Private Equity, Real Assets, Global Market Strategies and Solutions in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: consumer & retail, energy, financial services, aerospace, defense & government services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,500 people in 34 offices across six continents.

News Source : The Carlyle Group Sells Stake in General Lighting Company to Philips

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