Tyco International acquires Raychem for $2.87bn

Tyco International acquires Raychem for $2.87bn
Tom Foremski
Tyco International agreed to acquire electronics component maker Raychem for $2.87bn just months after buying AMP for about $11bn.
Tyco said that Raychem offers a good strategic fit and will help it boost its electronics businesses. The deal values Raychem at a 19 per cent premium compared with its recent stock price.
“Raychem’s products, international presence, and customers are all highly complementary with Tyco’s, particularly those of our AMP subsidiary,” said Tyco CEO Dennis Kozlowski. “This acquisition will provide opportunities for both significant cost reductions, as well as enhanced growth through an expanded product line, new customers and marketing efficiencies. With this transaction, Tyco will have approximately $9.3bn in electronics sales.”

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