Tyco To Split Into Three Independent Entities
The 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.
Upon 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 company.
Under 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.