CORK, Ireland, Aug. 18, 2016 /PRNewswire/ -- Tyco (NYSE: TYC)
today announced that it has signed a definitive agreement to sell
its security business in South
Africa, which operates locally under the ADT brand, to
Fidelity Security Group for approximately ZAR 1.9 billion (USD 140
million). This business provides security monitoring
services, including dispatch of armed response guards, as well as
fire detection and protection, access control and other
security-related services, to residential and commercial
customers. The financial impact of this planned sale was
previously disclosed as part of Tyco's fiscal third quarter
earnings report on July 29, 2016.
After the transaction is completed, Tyco will continue to
provide its fire, security and life safety products in South
Africa. ADT will serve as a local distributor for Tyco's
residential and commercial security products and solutions, as well
as Tyco's specialized performance solutions for retail
businesses.
The transaction is expected to close in late fiscal first
quarter of 2017 and is subject to customary closing conditions,
including regulatory approvals.
The financial results of this business are reported within the
Rest of World Integrated Solutions & Services segment. In
fiscal year 2016, the business is expected to generate revenue of
approximately USD 160
million.
Deutsche Bank is acting as exclusive financial adviser and
Simpson Thacher & Bartlett LLP and Bowman Gilfillan are acting
as legal advisors to Tyco.
ABOUT TYCO
Tyco (NYSE: TYC) is the world's largest
pure-play fire protection and security company. Tyco provides more
than three million customers around the globe with the latest fire
protection and security products and services. Tyco has over 57,000
employees in more than 900 locations across 50 countries serving
various end markets, including commercial, institutional,
governmental, retail, industrial, energy, residential and small
business. For more information, visit www.tyco.com.
ABOUT FIDELITY SECURITY GROUP
Fidelity Security Group
(Fidelity) is Southern Africa's
largest integrated security solutions provider and the industry
leader in protection innovation. Fidelity offers a vast range of
security services (Guarding, Cash Solutions and Integrated Armed
Response) and related products and has around 47,000 employees
across 142 integrated points of presence throughout Southern Africa. Fidelity remains well
positioned to add value to all its customers, which includes many
of the top listed companies, state owned companies and
multinational conglomerates. For more information, visit
www.fidelitysecurity.co.za.
FORWARD-LOOKING STATEMENTS
This press release
contains a number of forward-looking statements. In many cases
forward-looking statements are identified by words, and variations
of words, such as "anticipate", "estimate", "believe", "commit",
"confident", "continue", "could", "intend", "may", "plan",
"potential", "predict", "positioned", "should", "will", "expect",
"objective", "projection", "forecast", "goal", "guidance",
"outlook", "effort", "target", and other similar words. However,
the absence of these words does not mean the statements are not
forward-looking. Examples of forward-looking statements include,
but are not limited to, revenue, operating income, earnings per
share and other financial projections, statements regarding the
health and growth prospects of the industries and end markets in
which Tyco operates, the leadership, resources, potential,
priorities, and opportunities for Tyco in the future, Tyco's credit
profile, capital allocation priorities and other capital market
related activities, and statements regarding Tyco's acquisition,
divestiture, restructuring and other productivity initiatives. The
forward-looking statements in this press release are based on
current expectations and assumptions that are subject to risks and
uncertainties, many of which are outside of our control, and could
cause results to materially differ from expectations. Such risks
and uncertainties include, but are not limited to: economic,
business, competitive, technological or regulatory factors that
adversely impact Tyco or the markets and industries in which it
competes; unanticipated expenses such as litigation or legal
settlement expenses; tax law changes; and industry specific events
or conditions that may adversely impact revenue or other financial
projections. Actual results could differ materially from
anticipated results. Tyco is under no obligation (and expressly
disclaims any obligation) to update its forward-looking statements.
More information on potential factors that could affect the
Company's financial results is included from time to time in the
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the
Company's public reports filed with the U.S. Securities and
Exchange Commission (SEC), including the Company's Form 10-K for
the fiscal year ended September 25,
2015.
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SOURCE Tyco