Tyco International - Acquisition Agreement
September 28 1999 - 11:24AM
UK Regulatory
RNS No 1707k
TYCO INTERNATIONAL LIMITED
28 September 1999
FOR IMMEDIATE RELEASE CONTACT:
J. Brad McGee
Senior Vice President
Tyco International (US) Inc.
(603) 778-9700
TYCO INTERNATIONAL TO ACQUIRE
SIEMENS ELECTROMECHANICAL COMPONENTS DIVISION
Hamilton, Bermuda, September 28, 1999 - Tyco International Ltd. (NYSE-TYC,
LSE-TYI, BSX-TYC), a diversified manufacturing and service company,
announced today that it has signed a definitive agreement pursuant to which
Tyco will acquire Siemens Electromechanical Components GmbH & Co. KG
(Siemens EC) from Siemens AG (Berlin and Munich) for approximately $1.1
billion in cash.
Siemens EC, with sales of approximately $900 million, is the world market
leader for relays and one of the world's leading providers of components to
the communications, automotive, consumer and general industry sectors,
offering a broad spectrum of products ranging from individual components to
intelligent subsystems.
"Tyco won't make an acquisition unless it is accretive and has an excellent
strategic fit with our existing businesses, so to say that Siemens
Electromechanical Components business is an excellent fit with Tyco
Electronics and will have a significant immediate positive impact to earnings
probably doesn't do justice to the quality of this opportunity," said L.
Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "From a
product standpoint, Siemens EC's relays are highly complementary with Tyco
Electronics' connectors and interconnect products and allow us to leverage our
customer relationships. From a market standpoint, the combination of Siemens
EC's strengths in the telecommunications industry and Tyco Electronics' in the
automotive industry provides powerful opportunities to enhance our combined
market position," he added.
"As with our recent merger with AMP and acquisition of Raychem, we expect this
transaction will be highly successful for Tyco Electronics. With both AMP and
Raychem, we have achieved top line growth well beyond our expectations and
continue to see these favorable trends. In addition, we have exceeded our
initial assumptions with respect to the timing and scale of cost reductions
from both businesses. These results will provide positive benefit to
shareholders during our current quarter and next fiscal year," he concluded.
Tyco International Ltd., a diversified manufacturing and service company, is
the world's largest manufacturer and servicer of electrical and electronic
components and undersea telecommunications systems, the world's largest
manufacturer, installer, and provider of fire protection systems and
electronic security services, the largest manufacturer of flow control valves,
and has strong leadership positions in disposable medical products, plastics,
and adhesives. The Company operates in more than 80 countries around the
world and has expected fiscal 1999 revenues in excess of $22 billion.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning market growth, the expected
benefits from the AMP merger and Raychem acquisition, the earnings impact from
the Siemens EC acquisition and expected fiscal 1999 revenues are forward-
looking statements, which are based on management's good faith expectations
and belief concerning future developments. Actual results may materially
differ from these expectations as a result of many factors, relevant examples
of which are set forth in the "Management Discussion and Analysis" section of
the Tyco's 1998 Annual Report to Shareholders, Tyco's 1998 Annual Report on
Form 10-K, Tyco's Current Report on Form 8-K filed on June 3, 1999.
END
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