by Brianna Crandall — January 27, 2016—Johnson Controls and Tyco announced Monday that they have entered into a definitive merger agreement under which Johnson Controls, a global multi-industrial company, will combine with Tyco, a global fire and security provider, to create a leading provider of building products and technology, integrated solutions and energy storage.
Johnson Controls says Tyco’s world-class fire and security businesses enhance the Johnson Controls buildings platform, and the move positions both companies’ businesses for global growth. Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company. Johnson Controls’ 130,000 employees currently serve customers in more than 150 countries.
Tyco says the strategic step leverages the unique strengths of each company, allowing them “to better capture opportunities created by increased connectivity in homes, buildings and cities.” Tyco has over 57,000 employees in more than 900 locations across 50 countries who provide more than three million customers around the globe with the latest fire protection and security products and services.
The two businesses will be combined under Tyco International plc, which will be renamed “Johnson Controls plc.” The combined company is expected to maintain Tyco’s Irish legal domicile and global headquarters in Cork, Ireland. The primary operational headquarters in North America will be in Milwaukee, Wisconsin, where Johnson Controls has been based.
Benefits for customers
The combined company brings together best-in-class product, technology and service capabilities across controls, fire, security, HVAC, power solutions and energy storage, to serve various end-markets including large institutions, commercial buildings, retail, industrial, small business and residential. The combination of the companies’ buildings platforms creates immediate opportunities for near-term growth.
The new company will also benefit by combining innovation capabilities and pipelines involving new products, advanced solutions for smart buildings and cities, value-added services driven by advanced data and analytics and connectivity between buildings and energy storage through infrastructure integration.
As a result, the new company is expected to be able to better partner with its customers to help improve their overall performance and operations, enhancing the experience for their own customers in areas such as comfort, safety and accessibility.
In addition, the combined company will have one of the largest energy storage platforms with capabilities including traditional lead acid as well as advanced lithium ion battery technology serving the global energy storage market.
