As announced on September 28, 1999, Tyco agreed to purchase Siemens EC for approximately $1.1 billion in cash. Siemens will be integrated with Tyco Electronics within Tyco's Telecommunications and Electronics segment. The combined group will be the world leader in the manufacture of passive electronics products.
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.
"Siemens Electromechanical Components business is an excellent fit with Tyco Electronics and will have a significant immediate positive impact to earnings," 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.
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, has strong leadership positions in disposable medical products, plastics, and adhesives, and is the largest manufacturer of flow control valves. The Company operates in more than 80 countries around the world and has expected fiscal 2000 revenues in excess of $25 billion.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning the earnings impact from the Siemens EC acquisition and expected fiscal 2000 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.