Johnson Controls, Tyco Agree On $US36.2 Billion Merger
Johnson Controls will merge with Tyco, giving the combined entity a market capitalisation of $US36.2 billion in a deal that will close by year’s end, 2016.
The board of directors of the combined company is expected to have 11 directors, six directors from Johnson Controls and five from Tyco. The combined company will be renamed Johnson Controls – Alex Molinaroli will be the chairman and CEO of the combined company, with George Oliver serving as president and COO and as a director on the new board, with responsibility for the operating businesses and leading the integration.
After 18 months, Oliver will become CEO and Molinaroli will become executive chair for one year, after which Oliver will become chairman and CEO.
In a prepared statement, Alex Molinaroli, Johnson Controls chairman and CEO, Johnson Controls said that "Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth." The deal will allow JCI to "further invest globally, develop new innovative solutions for customers and return capital to shareholders," he said.
Johnson Controls has an enterprise value of $14.6 billion; Tyco has an enterprise value of $29.07 billion. JCI's market capitalization is $13.9 billion and Tyco's is $22.3 billion.♦