Tyco International <\/a>\u201cto create the leader in building products and technology, integrated solutions and energy storage.\u201d<\/p>\nThe two businesses will be combined under Tyco International plc, which will be renamed Johnson Controls plc and will maintain Tyco\u2019s Irish legal domicile and global headquarters in Cork, Ireland. The combined company\u2019s primary operational headquarters in North America will remain in Milwaukee, longtime home of Johnson Controls.<\/p>\n
The Tyco portfolio\u2019s focus on security and fire systems integration, commercial security monitoring, and fire, security and life safety products is intended to complement Johnson Controls\u2019 long-standing platform in building systems. The rationale is thus that the new company will combine products, technology and service capabilities across controls, fire, security, HVAC, power solutions and energy storage, to serve markets including large institutions, commercial buildings, retail, industrial, small business and residential.<\/p>\n
From that standpoint particularly, the deal calls to mind last September\u2019s acquisition of Johnson Controls\u2019 Global Workplace Solutions business by CBRE Group for an undisclosed amount. That transaction, too, was touted as highly synergistic, because GWS was a leading provider of enterprise facilities management services for global corporations and other large occupiers of CRE outside the United States, while CBRE\u2019s facilities management services were then focused on the Americas. GWS had calendar 2014 revenues of more than $3 billion.<\/p>\n
(Much has been also made, however, of the estimated $150 million in tax savings that will accrue to the companies from the corporate tax inversion inherent in the merger.)<\/p>\n
\u201cWe see this as a tremendous opportunity for both companies,\u201d through revenue growth, \u201ctax efficiencies\u201d and other factors, Johnson Controls spokesperson Fraser Engerman told CPE.<\/p>\n
The merger announcement highlighted the new company\u2019s strengths in advanced solutions for smart buildings and cities and in energy storage, where the company reportedly will have one of the largest platforms with capabilities in both traditional lead-acid batteries and advanced lithium-ion technology.<\/p>\n
After the closing of the deal, which has been approved by both boards of directors, Johnson Controls shareholders will own about 56 percent of the equity of the combined company and receive aggregate cash consideration of about $3.9 billion. Current Tyco shareholders will own the remaining approximately 44 percent.<\/p>\n
Johnson Controls’ CEO\u00a0Alex Molinaroli will be chairman & CEO of the new company for the first 18 months once the deal is complete, while Tyco CEO George Oliver will become president & COO\u00a0during the same time period. After the 18 months, Oliver will become CEO and Molinaroli will become executive chair.<\/p>\n","protected":false},"excerpt":{"rendered":"
The facilities management giants announced their merger, which will move Johnson Controls to Ireland and create an industrial powerhouse.<\/p>\n","protected":false},"author":882,"featured_media":1004135606,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,16,23891,21742],"tags":[],"class_list":["post-1004135600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-international","category-national","category-latest"],"acf":[],"yoast_head":"\n
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<\/a>