Verizon agreed to sell its wireline-related businesses in Hawaii to The Carlyle Group for $1.65 billion in cash. The transaction includes the equity of Verizon Hawaii Inc., which operates 707,000 switched wireline access lines, as well as the services and assets of Verizon Long Distance, Verizon Online and Verizon Information Services (directory publishing) in Hawaii. In 2003, these businesses had sales of $610 million, operating income of $58 million and depreciation expense of $111 million.
The Verizon Wireless operations and assets in Hawaii are not included in the sale. Verizon will also retain two units in the state that provide services for federal government customers, Verizon Federal Network Systems and Verizon Federal Inc.
The Carlyle Group, based in Washington, D.C., is one of the world's largest private equity firms.
Carlyle Managing Director William E. Kennard said, "We are excited about the opportunity to serve the people of Hawaii as the new owners of Hawaii's telephone company. In short order we will offer new services to our customers, including expanded broadband, and we expect to add many new jobs after the acquisition. Importantly, rates will stay the same as we reposition the business as a true local company befitting its local heritage -- locally branded, locally managed and locally operated. Further, we plan to have strong local representation on the company's Board of Directors and senior management team."http://www.verizon.comhttp://www.thecarlylegroup.com
- Carlyle Managing Director William E. Kennard served as Chairman of the FCC during the Clinton Administration.
- In April 2004, The Carlyle Group acquired Kingston Inmedia, the satellite service provider from Kingston Communications (Hull) plc, the UK alternative carrier, in an all-cash deal of £34 million.
- In October 2003, The Carlyle Group formed an alliance with LG Corp. to invest US$1.34 billion in Hanaro Telecom, a large broadband carrier in South Korea.
- During 2003, The Carlyle Group (Carlyle) and Welsh, Carson, Anderson & Stowe (WCAS) acquired Qwest Communications' yellow page directories business for $7.05 billion.
