Tyco International recently announced that it will split into three public companies. Tyco Healthcare and Tyco Electronics will separate from the Tyco Fire & Security and Engineered Products & Services businesses through tax-free stock dividends to Tyco shareholders, who will then own all the stock in all three companies. Transaction costs are expected to be roughly $1 billion; largely for tax and debt refinancing.
Ed Breen, chairman and chief executive officer, said in a statement that “many legacy financial and legal issues have been resolved” and that the board of directors believed that the split was the best approach to “enable these businesses to achieve their full potential.”