Tyco International, the $17-billion US diversified giant today said that it would split its business into three independent publicly traded companies, becoming the latest US company to announce plans to seperate its businesses.
Incorporated in Switzerland, with its operational headquarters in New Jersey in the US, Tyco International will split its ADT North America residential security business, flow control products and services and the fire and security business into three independent, publicly traded companies.
The company said it intends to accomplish the separation by issuing tax-free stock dividends of the ADT and flow control businesses to Tyco shareholders, after which Tyco shareholders will own 100-per cent in each of the three publicly traded companies.
Tyco expects one-time transaction costs to be about $700 million and hopes to complete the transaction in about 12 months, subject to certain conditions including the approval of its shareholders.
"Over the last four years, we have strengthened our competitive position in our core security, fire and flow control businesses by driving organic growth, investing in R&D and technology, increasing efficiency and productivity and making strategic acquisitions," said Tyco chairman and CEO Ed Breen.
Tyco's ADT North America residential business is a leading provider of security and fire alarm systems in North America, serving more than 6 million residential homes and small businesses.