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Telecommunications equipment industry

Forstmann Little Sells Remaining Stake in General Semiconductor

Strategic Insights

— 1 min read

Forstmann Little & Co. has finalized the sale of its remaining 5.4 million share stake in General Semiconductor, Inc. (NYSE: SEM), realizing a significant return on investment. The private investment firm had initially acquired General Instrument Corporation, the parent company of General Semiconductor, for $1.5 billion in August 1990. The transaction marks a successful long-term investment for Forstmann Little, which has achieved a return of over nine times its original investment. General Semiconductor, a market leader in the discrete segment of the semiconductor industry, is well-positioned for future growth with its strong platform and manufacturing facilities in multiple countries.

Key Takeaways:

  • Forstmann Little sold its remaining 5.4 million share stake in General Semiconductor, Inc. for $35 million in a block trade to Donaldson, Lufkin & Jenrette.
  • The private investment firm had initially acquired General Instrument Corporation for $1.5 billion in August 1990 and received approximately $180 million in equity.
  • General Semiconductor, a market leader in the discrete segment of the semiconductor industry, has manufacturing facilities in China, France, Germany, Ireland, Taiwan, and the United States.
  • Forstmann Little has achieved a return of over nine times its original investment, totaling approximately $1.7 billion, including the sale of its remaining stake in General Semiconductor.
  • The firm has invested over $13 billion in 23 acquisitions, including Gulfstream Aerospace, General Instrument, Ziff-Davis Publishing, Yankee Candle Company, and Community Health Systems.
  • Forstmann Little currently has approximately $4 billion in committed capital for future investments.

Statistics:

  • Forstmann Little's initial investment in General Instrument Corporation: $1.5 billion
  • Forstmann Little's equity in the deal: approximately $180 million
  • Return on investment: over $1.7 billion
  • Total number of companies acquired by Forstmann Little: 23
  • Total investment by Forstmann Little: over $13 billion
  • Committed capital for future investments: approximately $4 billion

Sources:

  • BUSINESS WIRE, "Forstmann Little Sells Remainder of General Semiconductor Stake" (April 27, 1999)

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