Tyco to scale down its business, Fire & Security part of that measure
November 6, 2003
NEW YORK - Tyco International announced a corporate overhaul this week that would result in the sale of more than 50 of its smaller businesses, the closure of 200 facilities and the elimination of 7,200 jobs, with its Fire & Security business expected to bear a fair share of the changes.
More than half of the planned divestitures, based on revenues, are in the Fire & Security market, with 184 of that sectorÃ¢â‚¬â„¢s facilities slated for consolidation. About 5,000 of the layoffs will also come from the Fire & Security group.
It remains unclear exactly how the streamlining will impact TycoÃ¢â‚¬â„¢s Fire & Security businesses here in North America. Company officials from Tyco did not reply to inquiries from Security Systems News by the SSN Newswire press time.
A company-issued press release about the changes declined to identify which businesses Tyco plans to exit.
But security analyst John Mack, president and chief executive officer of USBX Advisory Services, speculated many of the changes in the Fire & Security business will come on the international front and non core businesses.
Ã¢â‚¬Å“ TheyÃ¢â‚¬â„¢re not selling Sensormatic here or any significant piece of ADT,Ã¢â‚¬Â speculated Mack. Ã¢â‚¬Å“The business giving them the most trouble is their European security business.Ã¢â‚¬Â
Tyco also appears to broadly define companies that fit within its Fire & Security unit. For example, FuelQuip, an Australian company that distributes gasoline in Australia and New Zealand, is part of the Fire & Security group. According to published reports, FuelQuip is one of the companyÃ¢â‚¬â„¢s Tyco plans to sell.
In all, Tyco lists 59 companies on its website under the Fire & Security business unit. ADT Security Services, Digital Security Controls, Sensormatic, SimplexGrinnell, Sonitrol and Tyco Safety Products are part of that group.
For the complete story, see the December issue of Security Systems News.