"Our acquisition discipline requires that we demonstrate clear benefits to Tyco shareholders in any potential transaction. Every acquisition must provide superior financial return, be immediately accretive to our earnings, have excellent long-term growth prospects, produce strong cash flow, and fit within our four existing business segments," said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "While there were substantial potential synergies with Williams in our complementary fire and security businesses, we were unable to structure a transaction that would have achieved these benefits for Tyco shareholders," he added.
Mr. Kozlowski provided a very positive outlook for the existing Tyco businesses: "We continue to see strong organic revenue growth across all of our businesses. Through operating leverage and the rapid growth of our higher margin service businesses, this translates to even greater gains on the bottom line. We will further reinforce these financial results as we continue to deliver accelerated cost savings from acquisitions. While organic business growth will continue to be a critical driver of our performance, our ability to generate strong cash flow provides us with the opportunity and the capacity to make acquisitions that create both immediate and long-term positive value for our shareholders."
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer, installer, and provider of fire protection systems and electronic security services, the largest manufacturer and servicer of electrical and electronic components and underwater telecommunications systems, the largest manufacturer of flow control valves, and has strong leadership positions in disposable medical products and plastics and adhesives. The Company operates in more than 80 countries around the world and has expected fiscal 1999 revenues in excess of $22 billion.