Summary Box: Tyco plans breakup into 3 companies

AP News
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Posted: Sep 19, 2011 10:39 AM
Summary Box: Tyco plans breakup into 3 companies

WHAT HAPPENED: Tyco International Ltd. said Monday it plans to separate into three independent, publicly-traded companies. It will create an ADT North America residential security business and separate companies for flow control products and commercial fire and security.

WHY: Tyco said the new companies will have greater flexibility to pursue their growth strategies than they would under the current corporate structure.

THE PRECEDENT: In 2007, Tyco transitioned from a conglomerate with annual revenue of $41 billion into three public companies. It spun off its Covidien health care and Tyco Electronics businesses to focus on fire and security and engineered products.