How Tyco Inc. Transitioned from an Investment Holding Company to Diversified Global Manufacturing Company?
Tyco Inc. was founded in the year 1960 as an investing holding company. Its founder Arthur Gandua formed it in order to focus on the two areas of semiconductors and materials research. Tyco’s businesses flourished during the early 1960s largely due to the sixteen acquisitions it made in order to expand and diversify its businesses. The company went public in the early 1960s and a few years later the company was listed in the New York Stock Exchange.
In the ensuing years, Tyco grew its businesses through a series of acquisitions. The company’s first acquisition was Mule Battery Products, and from there on the company has acquired about 25 companies plying their businesses in different sectors. It would be fair to say that all these companies played a vital role in the company’s growth. After these acquisitions, the company achieved the status of conglomerate, on par with companies such as General Electric, Honeywell, and News Corporation, among others.
As the definition of a conglomerate goes by, it is a large company that comprises of diverse divisions, which manufacture, market, and sell unrelated goods and services. At times of crisis, a conglomerate can be hit hard by the meltdown of any one sector, as it directly affects the financial performance. Consequently, Tyco Inc. was also hit hard by certain business crisis. Hence, at one point in time, the company decided to split up to separate companies.
In January 2006, the company would be split up into three public companies: Tyco Healthcare, Tyco Electronics Ltd, and Tyco International Inc. In June 2007, the share distribution between the companies was completed and all the three companies became wholly independent and publicly traded companies. Tyco Healthcare along with Covidien Ltd. became a separate public company and was listed in the New York Stock Exchange under the symbol COV. Tyco Electronics Ltd. was renamed as TE Connectivity and was listed in the New York Stock Exchange under the symbol ‘TE’. The three companies have been posting stable business and financial performance since their separation.
Whereas Tyco International Ltd. is the only company which retained the original Tyco name and was listed in New York Stock Exchange under the symbol ‘TYC’. The company’s operates under three main business segments: Security Solutions, Fire Protection, and Flow Control. In 1997, Tyco merged with a security services company named ADT Limited. Later in the year, a new subsidiary was formed in the name of ADT Security Services, which engaged in the manufacturing, marketing, and supply of electronic security systems, fire alarm systems, communication systems, and integrated building management systems, among others.
Today, after the successful integration of all the acquired companies, Tyco International’s product portfolio includes fire alarm systems, fire-fighting hardware & foam concentrates, circuit protection devices, engineering services, fire sprinklers, security systems, grooved products,
valves and controls, pressure-relief valves for nuclear power generation, safety products, and
access control equipment, among others. With all these products, business segments, and acquisitions, it would be fitting to say that Tyco International Ltd. is a true industrial conglomerate.
DazzleRogers - About Author:
Dazzle Rogers is a freelance writer and an active blogger, who likes to share his opinions and intellections with the Internet community in order to source out some great deals like the ones provided in this link. Tyco International Ltd. is a conglomerate with a focus on sectors such as security solutions, fire protection, and flow control.
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