Switzerland-based conglomerate Tyco International (TYC) said Monday that it plans to split into three publicly traded companies, allowing its separate businesses to plot their own course, and hopefully ramp up growth. Shares jumped 3.7% on the news.
The three new companies will be: ADT North America Residential; Flow Control; and Commercial Fire and Security.
“All three companies will have industry-leading positions in large and fragmented industries and enhanced capabilities to serve their distinct customers,” the company said in a statement. “Importantly, the new standalone companies will have greater flexibility to pursue their own focused strategies for growth — both organic and through acquisitions — than they would under Tyco’s current corporate structure. This will allow all three companies to create significant value for shareholders.”
The split may make the companies more attractive takeover candidates too, possibly allowing shareholders to cash out at a premium in the next few years.
Tyco also split into three in 2007 after CEO Dennis Kozlowski who went to prison for securities fraud, creating Tyco Electronics (now TE Connectivity), and Covidien (COV).
No comments:
Post a Comment