Carlyle sells Japan's AvanStrate to Vedanta Resources
Vedanta Resources, a metals and mining company founded in India and now headquartered in London, has agreed to assume control of Japanese LCD glass manufacturer AvanStrate from The Carlyle Group.
It will pay $158 million, of which $151 million will be used to take out AvanStrate debt with a face value of approximately $299 million. Vedanta will also extend a $7 million loan to the company and transfer a “nominal consideration” to Carlyle for an equity interest of just over 51%, according to a statement.
The private equity firm acquired a 52.6% stake in AvanStrate, then known as NH Techno Glass Corporation, for JPY58.1 billion (then $713.8 million) in May 2008. Existing shareholder Hoya Corp. retained the equity balance. There were subsequently several unsuccessful attempts to list the business.
AvanStrate is a leading global manufacturer of glass substrates for small and medium-sized high-resolution thin film transistor LCD panels used in smart phones, cameras, flat screen televisions, laptop computers, and vehicle satellite navigation systems. It generated around $169 million in revenue, $75 million in EBITDA, and $1.4 million in net profit for the year ended March 2017.
Vedanta sees the acquisition as a means of developing its supply of basic materials for technology applications. The company, which reported $11.5 billion in revenue for the 2017 financial year, primarily produces zinc, lead, silver, oil and gas, iron ore, copper, and aluminum. It also has power generation operations in India.
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