Summary
Tyco International Ltd. (JCI) announced on December 20, 2005, a definitive agreement to divest its Plastics, Adhesives, and Ludlow Coated Products businesses to an affiliate of Apollo Management, L.P. for $975 million in cash. This strategic move is part of the company's ongoing assessment of its business segments and follows previous disclosures regarding potential impairments for these operations. The sale is subject to customary closing conditions and regulatory approvals, with an expected completion in the first quarter of 2006. Tyco anticipates recognizing a pre-tax impairment and other charges between $250 million and $300 million related to this transaction, reflecting adjustments based on the agreed cash price and potential working capital changes.
Key Highlights
- 1Definitive agreement to sell Plastics, Adhesives, and Ludlow Coated Products businesses for $975 million in cash.
- 2Buyer is an affiliate of private investment firm Apollo Management, L.P.
- 3Transaction is expected to close in the first quarter of calendar year 2006.
- 4Sale is subject to regulatory approval and normal closing conditions.
- 5Anticipated pre-tax impairment and other charges in the range of $250-$300 million associated with the sale.
- 6The sale aligns with Tyco's continuous assessment of its business segments' recoverability.