KKR et al. in final exit from NXP Semiconductors

A statement posted on the company's website reads that as a result of recent sales, NXP's private equity investors have fully liquidated their positions and no longer own any shares in the business.

In November 2006, a consortium led by KKR and backed by Silver Lake Partners, AlpInvest, Apax Partners, Bain Capital, and Ardian acquired an 80.1% majority stake in Philips' Semiconductors business. Philips retained the remaining 19.9%.

The transaction valued the enterprise at €8.3bn, consisting of the €3.4bn purchasing price, €4bn of debt and other liabilities, and €900m for Philips' remaining stake. Philips received approximately €6.4bn for the sale of its stake.

NXP has been a listed business on Nasdaq since 2010. KKR, Bain and the other investors had raised $476m with the IPO, having cut the price of the initial offering by 33%.

The investors made a further partial exit in 2013, raising $910m through the sale of 30 million shares as part of a secondary offering. The company then had a market cap of around $7.4bn, with sales of $4.36bn in 2012.

In 2015, Blackstone, TPG Capital, Carlyle Group and Permira sold portfolio company Freestyle Semiconductor to NXP in a $17.6bn cash-and-stock deal.

At the time of the merger, NXP's backers owned approximately 65 million shares, or about 18% of the company's outstanding shares. They have now fully liquidated their positions.

Company
NXP is a supplier of silicon systems for mobile communications, consumer electronics, digital displays, contactless payment, connectivity and in-car entertainment and networking. It was carved out of parent company Philips in 2006 when the consortium of private equity funds acquired a majority stake in the business.

The company was founded in 1950, employs 44,000 people in 35 countries and posted revenues of $6.1bn in 2015. It is headquartered in Eindhoven.

People
KKR – Johannes Huth (head).
Silver Lake Partners – Egon Durban (managing partner).

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