Johnson Controls Is in Talks to Combine With Tyco, WSJ Reportsby
Exact terms couldn’t be learned and an agreement may still fall apart, the Journal said on Sunday. Tyco could be valued at $15 billion to $20 billion, more than its market capitalization of $13 billion as of Friday.
The combination with Tyco, a maker of commercial fire and security systems, would help Milwaukee-based Johnson Controls expand outside of the auto-parts industry, which accounted for about 54 percent of its fiscal 2015 sales. Johnson Controls’ chief executive officer, Alex Molinaroli, is expected to run the combined company, the Journal said. Johnson Controls has a stock-market capitalization of about $23 billion.
Tyco International is based in Ireland and run from Princeton, New Jersey. Spokesmen for Tyco didn’t immediately respond to requests for comment.