Johnson Controls, Tyco to merge
Merger will place combined companies’ headquarters in Ireland.
Battery system supplier Johnson Controls Inc. (JCI) is merging with fire protection system maker Tyco International Plc.
Milwaukee-based Johnson Controls is headquartered in Milwaukee, Wis., while Tyco is based in Cork, Ireland.
Under the terms of the agreement, Johnson Controls will own about 56 per cent of the merged company. The new company will be renamed Johnson Controls PLC and maintain Tyco’s Irish legal domicile – a move that will save about US$150-million a year in tax, the companies said.
Johnson Controls Chief Executive Alex Molinaroli will lead the combined company for the first 18 months after the merger is complete.
“The proposed combination of Johnson Controls and Tyco represents the next phase of our transformation to become a leading global multi-industrial company,” Molinaroli said in a statement. “With its world-class fire and security businesses, Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth.”
The deal is expected to be completed by the end of 2016, the companies said.