Tyco's Merger with Johnson Controls Approved
Shareholders of both companies approved the deal Aug. 17. The companies expect to complete the merger Sept. 2 and predict they will realize $1 billion of savings from synergies and productivity initiatives.
Tyco, a global fire safety and security company that owns Scott Safety, is set to merge with Milwaukee-based Johnson Controls after shareholders of both companies approved the merger Aug. 17. They announced the merger will be completed Sept. 2 and have said they'll achieve $1 billion in savings from merger synergies and productivity initiatives. Tyco is based in Cork, Ireland.
The combined company will have $30 billion in annual revenue. "I am pleased our shareholders have voted in favor of this powerful strategic combination, which will unite two world-class companies with complementary capabilities," said Alex Molinaroli, the chairman and CEO of Johnson Controls who will have both of those titles initially at the combined company. "I am excited and enthusiastic as we create the world leader in buildings and energy systems with a strong leadership team and dedicated employees around the world ready to deliver on the promise of smarter cities and communities."
After the merger is completed, Tyco CEO George Oliver will be the company's president and chief operating officer, as well as a director on the new company's board. Molinaroli will serve as chairman and chief executive officer for 18 months after the closing, when Oliver will become CEO and Molinaroli will become executive chair for one year, after which Oliver will become chairman and CEO.
"We are excited about combining the vast capabilities of Johnson Controls and Tyco to help customers improve their safety, performance, and operations," Oliver said when the shareholders' voting results were announced. "I would also like to thank our shareholders for their confidence and investment in the company over the years and for their support of our vision with their approval of this merger."