Breaking up may be hard to do, but industrial conglomerate Tyco International of Pembroke, Bermuda, is going to take a crack at it by splitting into three independent, publicly traded companies.
The new companies would consist of Tyco Healthcare, including its Mallinckrodt division; Tyco Electronics, a manufacturer of electronic components; and Tyco Fire & Security and Engineered Products & Services (TFS/TEPS).
Tyco will implement the separation through tax-free stock dividends to Tyco shareholders, after which they will own 100% of the equity in three publicly traded companies. Tyco expects to complete the transactions during the first quarter of calendar 2007.
Company executives said they are making the moves to enable each of the companies "to achieve their full potential," and to enable them to move faster and more aggressively in their core markets.
Tyco Healthcare would have revenues of $10 billion and will be led by the division's current president, Rich Meelia, who will become CEO. Chief operating officer Kevin Gould and chief financial officer Chuck Dockendorff will also continue in their current leadership positions with the company, Tyco said.
In addition to Mallinckrodt's contrast media business, Tyco Healthcare's products would include surgical instruments and supplies, respiratory care products, needles and syringes, vascular therapies, sutures and wound care products, and generic pharmaceuticals.
By AuntMinnie.com staff writers
January 13, 2006
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