Summary
Johnson Controls International plc (JCI), then operating as Tyco International Ltd., filed this 8-K on May 16, 2014, to update its 2013 Form 10-K. The primary purpose of this filing is to reflect the presentation of its South Korean security business as a discontinued operation. This aligns with how the company presented continuing and discontinued operations in its second-quarter 2014 Form 10-Q. This update is significant as it involves the divestiture of the South Korean security business, which operates under Tyco Fire & Security Services Korea Co. Ltd., to an affiliate of The Carlyle Group for a purchase price of $1.93 billion. The company anticipates this sale to conclude in the third quarter of fiscal year 2014 and expects to record a gain on the sale. This move indicates a strategic restructuring by Tyco to streamline its operations and focus on core business areas.
Key Highlights
- 1Tyco International Ltd. is updating its 2013 Form 10-K to reclassify its South Korean security business as a discontinued operation.
- 2The company is selling its entire South Korean security business (Tyco Fire & Security Services Korea Co. Ltd. and subsidiaries).
- 3The divestiture is being made to an affiliate of The Carlyle Group for a purchase price of $1.93 billion, subject to customary adjustments.
- 4The sale is expected to close during the third quarter of fiscal year 2014.
- 5Tyco anticipates recognizing a gain on the sale of this business.
- 6This reclassification is consistent with prior disclosures in the company's Q2 2014 Form 10-Q.
- 7The filing incorporates updated financial information and disclosures related to this discontinued operation.