Dennis Kozlowski: Gimme, Gimme, Gimme

Doesn't Dennis Kozlowski ever relax? On Memorial Day, Tyco International's CEO unveiled a deal to buy U.S. Surgical for some $3.3 billion in stock. Tyco has swallowed some 20 companies in the past year and about 100 since Kozlowski got there in 1992.

It may seem a severe case of merger mania. But Kozlowski only chases targets that will strengthen Tyco in one of a few niches--from security alarms to medical supplies--and immediately add to earnings. U.S. Surgical, for instance, will make Tyco a $4.5 billion player in medical supplies, up from $100 million in 1993, and Kozlowski says he can cut the company's costs by $160 million in three years.

Thanks to all the deals, Tyco should earn $1.8 billion on sales of $15.8 billion in the fiscal year ending Sept. 30, 1999, says Credit Suisse First Boston analyst Brian Langenberg, up from earnings of $419 million on sales of $6.6 billion last year. And its market value now tops $31 billion, up from $1.6 billion when Kozlowski took over. With that record, he can afford to take July 4th off.

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