Hamilton, Bermuda, September 28, 1999 - Tyco International Ltd. (NYSE-TYC, LSE-TYI, BSX-TYC), a diversified manufacturing and service company, announced today that it has signed a definitive agreement pursuant to which Tyco will acquire Siemens lectromechanical Components GmbH & Co. KG (Siemens EC) from Siemens AG (Berlin and Munich) for approximately $1.1billion in cash.
Siemens EC, with sales of approximately $900 million, is the world market leader for relays and one of the world's leading providers of components to the communications, automotive, consumer and general industry sectors, offering a broad spectrum of products ranging from individual components to intelligent subsystems.
"Tyco won't make an acquisition unless it is accretive and has an excellent strategic fit with our existing businesses, so to say that Siemens Electromechanical Components business is an excellent fit with Tyco Electronics and will have a significant immediate positive impact to
earnings probably doesn't do justice to the quality of this opportunity," said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "From a product standpoint, Siemens EC's relays are highly complementary with Tyco Electronics' connectors and interconnect products and allow us to leverage our customer relationships. From a market standpoint, the combination of Siemens EC's strengths in the telecommunications industry and Tyco Electronics' in the automotive industry provides powerful opportunities to enhance our combined market position," he added.
"As with our recent merger with AMP and acquisition of Raychem, we expect this transaction will be highly successful for Tyco Electronics. With both AMP and Raychem, we have achieved top line growth well beyond our expectations and continue to see these favorable trends. In addition, we have exceeded our initial assumptions with respect to the timing and scale of cost reductions from both businesses. These results will provide positive benefit to shareholders during our current quarter and next fiscal year," he concluded.
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer and servicer of electrical and electronic components and undersea telecommunications systems, the world's largest manufacturer, installer, and provider of fire protection systems and electronic security services, the largest manufacturer of flow control
valves, and has strong leadership positions in disposable medical products, 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.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning market growth, the expected
benefits from the AMP merger and Raychem acquisition, the earnings impact
from the Siemens EC acquisition and expected fiscal 1999 revenues are
forward-looking statements, which are based on management's good faith
expectations and belief concerning future developments. Actual results may
materially differ from these expectations as a result of many factors,
relevant examples of which are set forth in the "Management Discussion and
Analysis" section of the Tyco's 1998 Annual Report to Shareholders, Tyco's
1998 Annual Report on Form 10-K, Tyco's Current Report on Form 8-K filed on
June 3, 1999.