Tyco International Announces Sale of Plastics, Adhesives and Coated Products Businesses to Apollo Management for $975 Million
December 20 2005 - 7:23PM
PR Newswire (US)
PEMBROKE, Bermuda, Dec. 20 /PRNewswire-FirstCall/ -- Tyco
International Ltd. (NYSE:TYC)(BSX:TYC) today announced that it has
reached a definitive agreement to sell its Plastics, Adhesives and
Ludlow Coated Products businesses to an affiliate of private
investment firm Apollo Management, L.P. for $975 million in cash.
The transaction is subject to regulatory approval and is expected
to close during the first quarter of calendar year 2006. Tyco's
A&E Products Group, a leading global producer of garment
hangers, is not included in this agreement and is expected to be
sold separately. Tyco announced earlier this year its intent to
sell its Plastics & Adhesives businesses, which no longer fit
within the company's portfolio. In anticipation of the sale and
beginning in the fourth quarter of fiscal 2005, the Plastics &
Adhesives segment was classified as a discontinued operation and
results of the segment were reported accordingly. As previously
reported in Tyco's 2005 annual report on form 10-K, the company
expects to incur an additional impairment charge related to this
transaction in the current quarter. The segment's 2005 net revenue,
excluding the A&E Products Group, was $1.7 billion. The
Plastics, Adhesives and Ludlow Coated Products businesses that are
included in this transaction encompass approximately 7,100
employees at 43 manufacturing sites in five countries -- primarily
across North America, as well as at locations in Belgium, Korea and
India. The business is one of the top U.S. producers of trash bags,
stretch film and plastic sheeting, as well as a leading global
producer of duct tape. Major markets served include the retail,
industrial, automotive, agricultural, home construction, and food
packaging sectors. Key brands include Ruffies(R) and Rhino-X(R)
trash bags; Film-Gard(R) plastic sheeting; Nashua(R) tapes;
Polyken(R) pipeline coatings; Scrollware(R) plastic dinnerware;
Thermo-Ply(R) and Energy-Brace(R) wall sheathing; as well as
R-Wrap(R) and Barricade(R) housewraps. ABOUT TYCO INTERNATIONAL
Tyco International Ltd. is a global, diversified company that
provides vital products and services to customers in five business
segments: Fire & Security, Electronics, Healthcare, Engineered
Products & Services, and Plastics & Adhesives. With 2005
revenue of $40 billion, Tyco employs approximately 250,000 people
worldwide. More information on Tyco can be found at
http://www.tyco.com/. DATASOURCE: Tyco International Ltd. CONTACT:
News Media, Sheri Woodruff, +1-609-720-4399, , or Investor
Relations, Ed Arditte, +1-609-720-4621, or John Roselli,
+1-609-720-4624 Web site: http://www.tyco.com/ Company News
On-Call: http://www.prnewswire.com/comp/897850.html
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