Carlyle Group And The AZ-EM Buyout (B): Value Creation After The Transaction Case Solution

IMD-3-2046 © 2009
Chakravarthy, Bala; Lachowitz, Jonathan; Leleux, Benoit F.

Abstract: The Carlyle Group’s financial investment committee, through a consentaneous vote, offered Dr. Robert Easton, the permission to make a company offer to obtain AZ Electronic Materials (AZ-EM) from Clariant.

The offer was signed on July 23, 2004 by Easton and the CEO of Clariant. With the offer done, Carlyle’s interest turned from offer making to producing value. AZ-EM had around 750 workers around the world and 2003 profits of around EUR566 million ($702 million).

Carlyle had particular knowledge in semiconductors and electronic products through its buyout and endeavor activities, consisting of financial investments in Jazz Semiconductor, Ness and CPU Technology, allowing it to support the AZ-EM management group from both a market and company advancement point of view. AZ-EM’s management group continued to be mainly undamaged after the sale.

Subjects: Private equity; Buyout; Leverage; Turnaround; Incentive structures; Chemical industry
Settings: Speciality Chemicals; Switzerland ; Mkt Cap; Electronics : CHF 500 million ; 2004-2009

Carlyle Group And The AZ-EM Buyout (B): Value Creation After The Transaction Case Solution
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