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.