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.

ADT designs, sells, installs, monitors and maintains these systems, and provides video, health, and interactive services to the home. The business has annual revenue of around $3 billion and Naren Gursahaney, the current president of Tyco's security solutions segment, will become the new company's CEO.

Tyco's flow control business is a global manufacturer of flow control products. The company designs, sells and services highly engineered valves and controls for the energy markets, general process industries, mining and water markets. This business has annual revenue of approximately $4 billion.

Patrick Decker, the current president of Tyco's flow control segment, will become the new company's CEO.

Tyco' said that its commercial security business will be combined with the current fire protection segment to form a standalone commercial fire and security company.

This company designs, manufactures, sells, installs and services security, fire detection and fire suppression systems. The company's commercial security portfolio consists of video and access control products and services for commercial, industrial and governmental customers, as well as anti-theft/electronic article surveillance systems and associated services for retailers.

The combined business has revenue of approximately $10 billion and approximately and George Oliver, the current president of Tyco's fire protection segment, will become the company's CEO.

Tyco expects $700 million in one-time transaction costs, largely for debt refinancing, separation and restructuring costs.

Under the proposed transaction structure, the ADT North America residential business is expected to be incorporated in the US, while the flow control business will be incorporated outside the US and the commercial fire and security business will remain incorporated in Switzerland.

Tyco's move comes after Kraft Foods, Ralcorp Holdings, McGraw-Hill Cos and energy giant ConocoPhillips recently announced plans to split their business, while Motorola had completed its split this year, into Motorola Mobility and Motorola Solutions.