Tyco Plans Breakup Into Four Units
Bermuda-based Tyco International Ltd., a diversified manufacturing and service company, recently announced a plan to split into four separate companies, including ones focusing on security and electronics, finance and health care and a unit that will make fire protection devices and flow control equipment.
The breakup represents a reversal of the mission for the company set by its chief executive officer, Dennis Kozlowski, who preached that merging dozens of companies into one results in a larger, more profitable entity. Under Kozlowski’s leadership, Tyco created $64 billion in acquisitions.
Tyco will make up to 20 percent of three of the four new units available for sale to the public.
In June 2001, Tyco completed its acquisition of CIT, creating a significant financial services platform for Tyco’s global operations. Four months later, CIT officially changed its name to Tyco Capital.
Local CIT representatives were unavailable for comment at press time. —Darryl James
