The Carlyle Group Sells Stake in General Lighting Company to Philips

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.

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 $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.

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.

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.

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Media Contacts –

The Carlyle Group

Catherine Armstrong

+44 20 7894 1632

Catherine.Armstrong@carlyle.com

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