Sun, Aug 05, 2001 - Page 11 News List

Tyco to purchase Sensormatic

ELECTRONICS The US-based burglar alarm specialist is buying the developer of security tags, used for merchandise to prevent shoplifting, for US$2.3 billion in stock


Last month, Tyco completed a US$1 billion purchase of Cambridge Protection Industries LLC, adding the SecurityLink brand. More than 20 percent of Sensormatic's business is so-called "recurring" revenue or sales of services.

Sensormatic, which is supplying security equipment to the 2001 Olympic Games in Salt Lake City, has about 5,800 employees.

Tyco's security and fire business has about 85,000. It's too early to determine how many jobs will be cut, Kane said.

Tyco's line of security products and services has evolved from the familiar ADT keypad security system found in homes. The company sells closed-circuit TV security in offices, warehouses and stores, security training for government workers, personal-duress gadgets, and services that allow customers to activate alarms and adjust the temperature in homes and offices remotely.

Tyco is also the biggest maker of electronic connectors, undersea fiber-optic cable and industrial valves. It is the second-biggest maker of disposable medical supplies behind Johnson & Johnson and has a finance unit, CIT Group.

Kozlowski reiterated per-share profit expectations of US$2.77 to US$2.78 in the fiscal year ending in September and said that US$3.45 is a "reasonable estimate" for 2002. Those projections are in line with the US$2.78 and US$3.43 expected by analysts, the average estimates according to Thomson Financial/First Call.

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