Verizon Communications Inc. on Friday announced an agreement to sell its wireline businesses in Hawaii to the Carlyle Group for $1.65 billion in cash.
Verizon, the biggest local phone company, expects the sale to close in 2005, pending regulatory approvals.
The businesses generated 2003 sales of $610 million and operating income of $58 million, according to New York-based Verizon. Under the agreement, the Carlyle Group will receive the equity of Verizon Hawaii Inc., a business operating 707,000 switched wireline access lines, as well as the services and assets of Verizon Long Distance, Verizon Online and Verizon Information Services, a directory publishing business.
The operations and assets of Verizon Wireless are not included in the sale. However, Verizon will keep two units that provide services to the federal government.
“The approximately 1,700 Verizon Hawaii company employees will remain employees and are included in the transaction,” Verizon stated in a press release. Verizon also said it and The Carlyle Group “will review transitional plans with employees in the coming weeks, and discuss benefits, pensions, savings plans and other issues.”
The Carlyle Group is a private equity firm with more than $18 billion under management, according to its Web site.
