AMP, with annual revenues of approximately $5.5 billion, designs, manufactures and markets a broad range of electronic, electrical, wireless and electro-optic connection devices and an expanding number of interconnection systems and connector-intensive assemblies. AMP's products have potential uses wherever an electronic, electrical, computer or telecommunications system is involved, and are becoming increasingly critical to the performance of these systems as voice, data, and video communications converge. The leader in its markets, AMP sells into the consumer and industrial, communications, automotive and personal computer markets.
"This acquisition presents very attractive strategic opportunities for
Tyco and an immediate positive impact to our bottom line," said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "Our goals are to make AMP the lowest-cost, most flexible and customer-focused manufacturer in the electronic and electrical components sector, providing significant revenue growth opportunities for the company. We expect to see significant margin improvement, double digit earnings growth and strong cash flows for the foreseeable future."
Juergen Gromer, AMP's Corporate Vice President/Senior Vice President of
Worldwide Sales and Services has been named President of AMP. Mr. Gromer, a 16-year veteran of AMP, will be responsible for AMP's worldwide businesses.
Ed Federman, Tyco's Senior Vice President and Corporate Controller, has been promoted to the positions of AMP's Executive Vice President, as well as Chief Financial Officer. Mr. Federman, who has been with Tyco for 16 years, will be responsible for all financial and administrative aspects of AMP's worldwide operations, and will also be directly involved with AMP's integration into Tyco.
Mr. Kozlowski said, "Juergen and Ed are a very strong team with complementary experience and skills. Juergen has extensive knowledge of AMP's products, extensive sales and marketing experience and a relentless commitment to customer issues. Ed brings significant financial and operating experience gained from a variety of positions of increasing responsibility from throughout Tyco's worldwide operations. I am confident that together they bring the skills necessary to increase AMP's revenue and profitability and create many growth opportunities for the AMP organization."
Pursuant to the merger agreement, shareholders of AMP receive 0.7507 shares of Tyco for each share of AMP. As a result, a total of approximately 164 million shares will be issued by Tyco. At the close of business on April 1, 1999, the price of Tyco was $71.875 per share.
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.