Tyco Internationalannounced Sept. 19 that it would split into three independent publicly traded companies: the ADT North America residential security business; flow control products and services, headed up byPatrick Decker; and commercial fire and security business, headed byGeorge Oliver.
company 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 percent of the equity in each of the three
publicly traded companies. Tyco expects to complete the transaction in
approximately 12 months, subject to certain conditions including the approval
of Tyco shareholders.
completion of the transaction, it is contemplated that current Tyco Chairman
and CEOEd Breenwill become nonexecutive chairman
of the commercial fire and security company, a director of the flow control
company, and a consultant to the ADT North America residential company. In
addition, current Tyco directors are expected to serve on the boards of each of
the three companies, including the roles of nonexecutive chairman of the flow
control company and the ADT North America residential
the proposed transaction structure, the ADT North America residential business
is expected to be incorporated in the United States, while the flow control
business will be incorporated outside the country. The commercial fire and
security business will remain incorporated in Switzerland.