Tyco Healthcare to become independent company

(Hamilton, Bermuda)has decided to split into four independent companies. The four new spinoffs will comprise healthcare, security and electronics, fire protection and flow control, and financial services. The largest spinoff, security and electronics, will be run by Dennis Kozlowski, chairman of Tyco, and Mark Swartz, chief financial officer.

The healthcare spinoff will include U.S. Surgical (sutures and laparoscopes), ValleyLab (surgery systems), Mallinckrodt (diagnostic imaging products) and Kendall Healthcare (syringes and needles). These produced 2001 revenues of US$7.1 billion. This unit will be run by Rich Meelia, who has been president of Tyco's healthcare unit for seven years.

A large conglomerate with a worldwide market value of $95 billion, Tyco has become one of the world's largest companies by acquiring hundreds of small competing firms over the last 10 years, spending more than $19 billion last year alone for purchasing other companies. Tyco decided to split into four smaller parts because of investor concerns over the way it has been accounting for acquisitions. The company hopes that the four new parts will be considered worth more separately than they were together.


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