Product details

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Published by: Institute for Management Development (IMD)
Originally published in: 2009
Version: 15.09.2010
Length: 12 pages
Data source: Field research

Abstract

This is the second of a three-case series. The Carlyle Group's investment committee, through a unanimous vote, gave Dr Robert Easton, the go-ahead to make a firm offer to acquire AZ Electronic Materials (AZ-EM) from Clariant. The deal was signed on 23 July 2004 by Easton and the CEO of Clariant. The transaction was valued at EUR338 million. It had taken significantly longer to complete than first anticipated. The fact that it was a carve-out and that it required different agreements across a host of geographies pertaining to assets and shareholding greatly added to the complexity of the transaction. With the deal done, Carlyle's attention turned from deal making to creating value. AZ-EM had approximately 750 employees worldwide and 2003 revenues of around EUR566 million (USD702 million). Carlyle had specific expertise in semi-conductors and electronic materials through its buyout and venture activities, including investments in Jazz Semi-conductor, Ness and CPU Technology, enabling it to support the AZ-EM management team from both an industry and business development perspective. It was also able to maintain and develop AZ-EM's business internationally thanks to its global presence, with teams across Asia, the US and Europe. AZ-EM's management team remained largely intact after the sale. Of the 40 senior managers, only the CEO, the CFO and one manager in the US were replaced.
Location:
Size:
Market cap CHF500 million
Other setting(s):
2004-2009

About

Abstract

This is the second of a three-case series. The Carlyle Group's investment committee, through a unanimous vote, gave Dr Robert Easton, the go-ahead to make a firm offer to acquire AZ Electronic Materials (AZ-EM) from Clariant. The deal was signed on 23 July 2004 by Easton and the CEO of Clariant. The transaction was valued at EUR338 million. It had taken significantly longer to complete than first anticipated. The fact that it was a carve-out and that it required different agreements across a host of geographies pertaining to assets and shareholding greatly added to the complexity of the transaction. With the deal done, Carlyle's attention turned from deal making to creating value. AZ-EM had approximately 750 employees worldwide and 2003 revenues of around EUR566 million (USD702 million). Carlyle had specific expertise in semi-conductors and electronic materials through its buyout and venture activities, including investments in Jazz Semi-conductor, Ness and CPU Technology, enabling it to support the AZ-EM management team from both an industry and business development perspective. It was also able to maintain and develop AZ-EM's business internationally thanks to its global presence, with teams across Asia, the US and Europe. AZ-EM's management team remained largely intact after the sale. Of the 40 senior managers, only the CEO, the CFO and one manager in the US were replaced.

Settings

Location:
Size:
Market cap CHF500 million
Other setting(s):
2004-2009

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