NEW YORK (AP) -- Fire protection and security company Tyco is selling its South Korean security business to asset manager The Carlyle Group for about $1.93 billion.
Tyco Fire & Security Services Korea Co. Ltd. and its subsidiaries form and run Tyco International Ltd.'s South Korean security business. That business serves approximately 475,000 small-and-medium-sized businesses, commercial and residential customers. It provides central monitoring services, with video surveillance and dispatch, access control and other customized security solutions as well as guarding services.
The business, which is based in Seoul, is expected to have fiscal 2014 revenue of approximately $600 million.
Tyco, based in Switzerland, said Monday that it anticipates net proceeds of $1.85 billion. Tyco said the proceeds will allow it to increase the amount of cash it uses for acquisitions, stock buybacks and other corporate purposes.
Due to the sale, Tyco now expects second-quarter earnings from continuing operations of $0.39 to $0.41 per share, down from $0.44 to $0.46 per share. Analysts polled by FactSet predict earnings of $0.46 per share.
The deal is expected to close in Tyco's fiscal third quarter.
Tyco also announced that its board approved an additional $1.75 billion in stock buybacks. This brings its total repurchase program to $2 billion, as $250 million was remaining under a prior authorization.
The Carlyle Group, based in Washington, D.C., had about $189 billion of assets under management at the end of 2013.
