Tyco International
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| Tyco International Ltd. | |
 |
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| Type | Public (NYSE: TYC) |
|---|---|
| Founded | 1960, incorporated 1962 |
| Headquarters | Pembroke, Bermuda Operational and Corporate: Princeton, New Jersey |
| Key people | Edward D. Breen, Chairman & CEO |
| Industry | Conglomerate |
| Products | Electronics, Healthcare, Aerospace, Plastic, Security, Industrial Products |
| Revenue |  $39.727 billion USD (2005) |
| Operating income | $5.795 billion USD (2005) |
| Net income | $3.032 billion USD (2005) |
| Employees | 258,400 (2004) |
| Slogan | A vital part of your world |
| Website | tyco.com |
Tyco International Ltd. NYSE: TYC is a conglomerate incorporated in Bermuda, with U.S. operational headquarters in New Jersey. Major business areas of Tyco include electronic components, health care, fire safety, security, and fluid control.
Tyco International Ltd. has no connection with Tyco Toys, a division of Mattel.
Contents |
[edit] 1980s
In the late 1980s Tyco started a series of acquisitions and growth. Companies acquired during this time included:
- Mueller Company
- Wormald
- Hindle valves
- Earth Technology Corporation
- Thorn Security
- ADT
- Electrostar
- Wells Fargo alarms
- AMP (1999)
- Siemens Electrochemical Components
For a full list of Tyco acquisitions please see (here(PDF))
[edit] 1990s
In 1992, Dennis Kozlowski became CEO of Tyco, and for the next several years, the company adopted an aggressive acquisition strategy, eventually acquiring (by some accounts) over 1000 other companies between 1991 and 2001.
In 1993 Tyco launched The Pipeline the internal employees newsletter. This was later changed to Tyco World. The final issue of which was published in April/May of 2006. After the acquisition of ADT Security, Tyco moved its incorporation to Bermuda in 1997. While publicly part of the merger (ADT was already incorporated in Bermuda), this move was controversial as it was seen as a use of a tax haven. This tax advantage was promoted in literature to shareholders and investors.
In 1999, just prior to a stock split, rumors of accounting irregularities surfaced. The rumours were strongly denied by Tyco's leadership, who accused the sources of selling Tyco shares short for personal gain. Partly in response to this, shareholders fought a proxy battle to reincorporate in Delaware, but this effort was rebuffed by the board of directors.
Also in 1999, Tyco acquired electronics connector manufacturer AMP and fuse maker Raychem.[1]
During this time, Tyco spun off the deep-sea fiber optic cable laying division it had purchased from AT&T as Tyco Submarine Systems in a much anticipated IPO.
Throughout the 1990s, Tyco's earnings seemed to improve steadily, with many investors giving it blue chip status. In hindsight this may have been an illusion generated by the ways in which the acquisitions were treated on the company's books. Unlike other companies where fraud and other charges were made public in 2001, 2002 and 2003 such as Enron and HealthSouth, Tyco was never in a cash crisis.
[edit] 2000-Present
On January 4, 2001, Tyco acquired Simplex Time Recorder Company for $1.15 billion in cash from Chris Watkins, the grandson of the company's founder. Tyco merged Simplex Time Recorder Co. with Grinnell Fire Protection to form SimplexGrinnell, the world's largest fire protection company
In January of 2002 Tyco announced a plan to split the company into four separate companies; however, this plan was abandoned.
In June of 2002 Edward D. Breen was appointed CEO of Tyco International. He was previously President and COO of Motorola.
In 2003, in response to the Dennis Kozlowski scandal, the company adopted the Guide to Ethical Conduct in order to guide and advise employees as to correct procedures and warn of unethical practices and behavior. All Tyco employees are now required to take a brief ethics course and sign an ethics statement annually.
In 2005, Videsh Sanchar Nigam Limited (VSNL), India acquired the Tyco Global Network (TGN) from Tyco international for $130 million. The chief stockholder in VSNL is India's Tata Group, also one of that country's largest conglomerates. It was once valued at $3 billion during the telecommunications bubble.
In January 2006 the company announced its split into three separate companies. (See section below)
[edit] Company separation
In the first quarter of 2007 Tyco International will be separated into three companies (ABC News), (Official Tyco press release), which will in turn operate totally separately from each other, with their own board of directors, CEO, management staff and financial structure.
The three companies will be:
- Tyco Healthcare
- Tyco Electronics
- Tyco Fire & Security and Tyco Engineered Products & Services (TFS/TEPS)
This announcement was made publicly on January 13, 2006.
An official Separation Management Team has been created to deal with all aspects of the separation and to make it as smooth as is possible for customers, employees and shareholders. Bob Scott has been announced as the leader of the SMT (link (DOC)). He joined Tyco in 2004.
Edward D. Breen, the current CEO of Tyco has announced that he will be staying on with TFS/TEPS as CEO.
[edit] Legal charges
Former chairman and chief executive Dennis Kozlowski and former chief financial officer Mark H. Swartz, were accused of the theft of US $600 million from the company. During their trial in March 2004, they contended the board of directors authorized it as compensation.
During jury deliberations, juror Ruth Jordan, while passing through the courtroom appeared to make an "okay" sign with her fingers to the defense table. She later denied she had intended that gesture, but the incident received much publicity (including a caricature in the Wall Street Journal), and the juror received threats after her name became public. Judge Michael Obus declared a mistrial on April 2, 2004.
On June 17, 2005, after a retrial, Kozlowski and Swartz were convicted on all but one of the more than 30 counts against them. The verdicts carry potential jail terms of up to 25 years in state prison. Kozlowski himself was sentenced to no less than eight years and four months and no more than 25 years in prison.
[edit] Products
Some of the many products made by Tyco include:
- Fire Fighting hardware and foam concentrates (Ansul, Skum, Total Walther and Sabo)
- Electronic components and cables. AMP
- Circuit protection devices RAYCHEM
- Critical communications systems. OpenSky and EDACS
- Engineering services
- Fire sprinklers. SimplexGrinnell, Wormald
- Medical supplies (Kendall wound care, Monoject syringes, Shiley endotracheal tubes)
- Pharmaceuticals (leading producer of narcotics and acetaminophen), Mallinckrodt laboratory chemicals
- Cyberskin
- Security systems (ADT)
- Curad brand bandages
- Valves and Controls
- Pressure Relief Valves for Nuclear Power Generation
- Safety Products [including Industrial site safety & Personal Protective Equipment (PPE)
- EAS(Electronic Article Surveillance) & RFID (Radio Frequency Identification) Products [Sensormatic]
- CCTV / Access Control Equipment. American Dynamics, Kantech, Software House
- Touchscreen Displays. ELO Touch Displays
[edit] See also
[edit] External links
- The Tyco 2005 Annual financial report (PDF) May be the last one of the fully incorporated Tyco International.
[edit] Data
- Yahoo! - Tyco International Ltd. Company Profile
- Tyco International Company Profile and News Archive
- Tyco International stock chart
