Tyco Sells Sonitrol Unit for $125.5M
NEW YORK (AP) _ Tyco International Ltd. said Monday it sold its Sonitrol security-systems unit to an investment group for $125.5 million as part of a restructuring program.
Sonitrol, part of Tyco Fire & Security, had revenue of about $80 million for fiscal 2003, the company said.
In November, Tyco, a manufacturing conglomerate based in Hamilton, Bermuda, said it would cut 7,200 jobs and sell units that contributed about $2.1 billion, or 6 percent of 2003 revenue, because they weren’t up to the company’s strategic or financial requirements.
The company hasn’t detailed which units are pegged for sale, but did note that 5,000 of the job cuts will come from the fire and security segment.
At the time, Tyco said most of the proceeds raised from the unit sales will be used to reduce debt.
Tyco’s fire and security services unit, with 31 percent of annual sales, is the world’s largest provider of security and fire-protection systems.
Tyco had revenue of $36.8 billion for the year ended Sept. 30.
Meanwhile, Two former Tyco executives currently are awaiting a jury’s verdict after being on trial for nearly six months in Manhattan. Former Tyco chief executive L. Dennis Kozlowski and former chief financial officer Mark Swartz are accused of looting $600 million from the conglomerate by hiding excessive pay packages from the company’s board and by selling stock at inflated prices.
Shares of Tyco rose 62 cents, or 2.3 percent, to close at $28.04 on the New York Stock Exchange.