Forstmann Little Concludes Successful 8-Year Investment in General Instrument.NEW YORK--(BUSINESS WIRE)--April 5, 1999 -- Forstmann Forstmann may refer to the one of the Forstmann brothers:
See: New York Stock Exchange : GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ) in three separate transactions, concluding a successful 8-year investment in which the firm will realize more than nine times its initial investment. In one transaction, General Instrument repurchased 5.3 million of its shares at a price of $28 per share. Separately, Liberty Media Corporation purchased 10 million General Instrument shares at a price of $28 per share. Forstmann Little has also sold another 4.3 million shares in a block transaction, reducing its ownership in General Instrument to 2.1 million shares. The firm expects to sell these remaining shares in the near future through open market or privately negotiated transactions. In connection with the conclusion of its investment, Theodore J. Forstmann Theodore J. Forstmann (b. 1940) is one of the founding partners of Forstmann Little & Company, a private equity firm. He is unmarried, and has no children. Forstmann is a graduate of Greenwich Country Day School, Phillips Academy, Yale University and Columbia Law School. , the firm's senior partner, has resigned from the General Instrument Board of Directors. "This has been an extremely successful long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investment for our firm," said Steven B. Klinsky, a general partner of Forstmann Little. "We are proud of GI's growth during our eight years of ownership, and we believe the company is well positioned for the future. We thank Ed Breen and his outstanding team for their many technological and business achievements, and for the value they have created for all GI shareholders." Forstmann Little invested approximately $180 million of equity in acquiring General Instrument in August 1990. Including today's transactions, the firm will realize more than $1.65 billion, over nine times its original investment. The total enterprise value of GI and its spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. companies, Commscope and General Semiconductor, has increased from approximately $1.5 billion in August 1990 to approximately $7.0 billion today. Founded in 1978, Forstmann Little is a private investment firm that has invested over $13 billion in 23 acquisitions, including Gulfstream Aerospace Gulfstream Aerospace Corporation is a producer of several models of private jet aircraft. Gulfstream Aerospace Corporation has been a unit of General Dynamics since 2001. Gulfstream's main facility is located in Savannah, Georgia, United States. , General Instrument, Ziff-Davis Publishing and Community Health Systems. The firm currently has approximately $4 billion in committed capital for future investments. |
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