Schaffhausen, Switzerland-based Tyco International Ltd. Tuesday announced that it plans to pursue a tax-free spin-off of its Electrical & Metal Products business. Tyco expects to file documents with the US Securities & Exchange Commission (SEC) over the next few months and to complete the proposed transaction in the first half of fiscal 2011. Following the transaction, the business would be an independent, publicly traded US company.
"Electrical & Metal Products is a high-quality business with well-recognized brands, a strong management team and an outstanding reputation in its markets," said Ed Breen, Chairman and Chief Executive Officer of Tyco. "We believe that the business is well-positioned for future success and that the environment is conducive to move forward with the transaction at this time."
The proposed transaction is expected to be structured as a tax-free distribution to Tyco shareholders, and is subject to a number of conditions including completion of a review process by the SEC, final approval by Tyco's Board of Directors and approval by Tyco's shareholders.
The Electrical & Metal Products business designs, manufactures and sells galvanized steel tubes and pipes, electrical conduit, armored wire and cable, metal framing systems and building components. The business serves a wide range of construction, electrical, fire, security, and mechanical applications and generated revenue of $1.4 billion in 2009.