Tyco International announced plans Monday to break itself into three publicly traded companies, a move that the conglomerate says will allow each business to more easily merge with or acquire other companies.
Tyco said it plans to spin off its ADT residential security business and its industrial pipeline and valves division into new companies. The surviving company would house Tyco’s commercial security business. Tyco shareholders would receive tax-free stock dividends of the ADT and the pipeline businesses, giving investors ownership of all three companies.
