The Electronic OEM Business of Thomas & Betts manufactures electronic connectors for the telecommunications, computer and automotive industries. During 1999, this business unit had revenues of $687 million. It has shown strong growth during the first half of 2000.
"The Electronic OEM Business of Thomas & Betts, whose performance over the past few months has continued to exceed our expectations, provides an excellent strategic fit within the Tyco Electronics Group," according to L. Dennis Kozlowski, Chairman and Chief Executive Officer of Tyco International. "Its product lines and customer base are highly complementary with those of Tyco Electronics and will provide an immediate positive impact to earnings," Mr. Kozlowski added.
The Electronic OEM Business includes such highly respected brand names as Augat and Ansley. Its product categories are composed of four key groups:
€¢ The Metallized Particle Interconnect group offers a state-of-the-art, patented, low cost, high performance, high density material interconnect system which is utilized in thermal management, backplane systems and laptop computers.
€¢ The General Professional Electronics group supplies PCB mounted electromechanical components, including switches, sockets and I/O connectors.
€¢ The Automotive group manufactures a variety of connectors for safety systems, I/O devices, wire harnesses, power distribution centers and other products.
€¢ The Mobile Communications group is the largest non-captive assembler of cellular phone battery packs, battery connectors and unique elastometric connection devices.
"This acquisition will increase the breadth of our product line for customers in all major markets. We add Augat and Ansley to our Tyco Electronics family of well-known brands, which includes AMP, M/A-COM and Raychem. This purchase will provide strong top line growth, significant cost reductions and enhanced shareholder value," concluded Mr. Kozlowski.
Clyde R. Moore, Chairman, President and Chief Executive Officer of Thomas & Betts, commented, "Divesting our Electronic OEM business will allow us to focus on what we do best -- manufacturing, marketing and distributing electrical and related components. We look forward to growing our leadership position in these markets."
ABOUT TYCO ELECTRONICS
Tyco Electronics Corporation is one of the major business units of Tyco International Ltd. Tyco Electronics is the world's leader in electrical, electronic and fiber-optic connectors and interconnection components and systems. It has facilities located in over 50 countries serving customers in the automotive, computer, communications, consumer electronics, industrial and power industries. With its headquarters in Harrisburg, Pennsylvania, USA, it is the largest passive electronics components supplier in the world, providing advanced technology products from its AMP, Elcon, Elo Touchsystems, HTS, M/A-COM, Madison Cable, OEG, Potter & Brumfield, Raychem. Schrack and Simel brands.
ABOUT TYCO INTERNATIONAL
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. It is the world's largest manufacturer, installer and provider of fire protection systems and electronic security services and the largest manufacturer of flow control valves. Tyco has strong leadership positions in disposable medical products, plastics and adhesives. The Company operates in more than 80 countries and has expected fiscal 2000 revenues in excess of $28 billion.
ABOUT THOMAS & BETTS
Thomas & Betts Corporation (NYSE: TNB) is one of the world's leading designers and manufacturers of electrical connectors and components. In 1999, Thomas & Betts reported sales of $2.52 billion and diluted earnings per share of $2.56.
FORWARD LOOKING INFORMATION
This release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. The forward-looking statements in this release include statements addressing the following subjects: future financial and operating results; and, the benefits of the acquisition.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the businesses of Tyco and the Electronic OEM Business of Thomas & Betts will not be integrated successfully; and, other economic, business, competitive and/or regulatory factors affecting Tyco's and the Electronic OEM Business of Thomas & Betts businesses generally.
More detailed information about these factors is set forth in Tyco's filings with the Securities and Exchange Commission, including Tyco's Annual Report on Form 10-K, as amended, for the fiscal year ended September 30, 1999, Tyco's most recent Quarterly Reports on Form 10-Q, as amended, and Tyco's Current Reports on Form 8-K. Tyco is under no obligation to (and expressly disclaim any such obligation to) update or alter their forward-looking statements whether as a result of new information, future events or otherwise.