Industry & Business

Johnson Controls, Tyco to merge in tax-saving deal

 Breaking News
  • ASAI Issues New Guidelines For Advertising Mobile Phone and Broadband Services The Advertising Standards Authority for Ireland (ASAI), the independent self-regulatory body committed to promoting the highest standards of marketing communications in Ireland, has introduced new guidelines relating to the advertising of mobile phone and broadband services. The guidelines will complement the existing ASAI Code in ensuring that certain marketing terms used by telecommunications operators convey [...]...
  • Sustainable Apartment Living For Ireland A new report on sustainable apartment living in Ireland was launched by the Housing Agency and Clúid Housing. Amongst some of the reports findings and research were that apartment living has increased in the last few years and according to the report, the number of apartments in Ireland has increased by 85% between 2002 and [...]...
  • Brand New Campaign Showcasing Ireland’s Food and Drink Starts Fáilte Ireland’s Taste the Island campaign has gone live with a brand-new TV ad encouraging domestic holidaymakers to take a short break in Ireland to enjoy some of the 700+ food and drink related experiences on offer across this September, October and November. Taste the Island is a 12-week celebration of Ireland’s seasonal ingredients, adventurous tastes [...]...
  • Enet Expands its Data Centre Connectivity Portfolio Across Dublin Enet, Ireland’s largest wholesale, open-access network provider, has added six more data centres across Dublin to its national network. The additional data centres allow it to offer more options when it comes to dark fibre and managed bandwidth to its customers, and will result in increased connectivity for consumers. Enet is now connected to 25 data [...]...
  • ACCA and Bank of Ireland Issue Warning Amid Foreign Currency Fluctuations Many Irish companies that deal in foreign currency are exposing their businesses to significant and unnecessary profitability risks due to a lack of consideration of appropriate hedging within their organisations. That’s the message from the Association of Chartered Certified Accountants (ACCA) and Bank of Ireland who have launched a new programme to support businesses in [...]...

Johnson Controls, Tyco to merge in tax-saving deal

January 25
21:30 2016

tycoTyco International and Johnson Controls announced today they will merge in a tax-saving deal. The deal combines Tyco’s operations in security and fire safety with Johnson’s businesses, which include energy storage.

The merger will result in $150m in annual tax savings as Johnson, based in Wisconsin in the US, will shift its domicile for tax purposes to Ireland, where Tyco is based.

Under the deal, Johnson shareholders will own 56% of the equity of the combined company and garner cash of $3.9 billion. Tyco shareholders will hold the remaining 44%.

The two companies said combining their products, which include fire and security systems, energy storage and building heating and cooling, will better serve industrial and commercial property clients.

“With its world-class fire and security businesses, Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth,” said Alex Molinaroli, chief executive of Johnson Controls.

“Through this transaction, we will also expand our ability to further invest globally, develop new innovative solutions for customers and return capital to shareholders,” he added.

Johnson Controls had fiscal 2015 revenues of $37.2 billion, while Tyco’s were $9.9 billion.

The two companies expect the deal to result in at least $500m in cost savings over the first three years.

Molinaroli will serve as chief executive for 18 months after the closing of the deal, after which he will be succeeded by Tyco CEO George Oliver.

Johnson plans to spin off its automotive seating and interiors business into a new publicly traded company called Adient.

Shareholders of both Johnson and Tyco will receive shares of Adient when the spin-off takes place at the start of fiscal 2017, the companies said.

About Author

admin

admin

Related Articles

New Subscriber

Subscribe Here



Advertisements





















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4