Johnson Controls and Tyco announced this week that they have entered into a definitive merger agreement under which Johnson Controls will combine with Tyco to create one organisation operating in the building products and technology, integrated solutions and energy storage sectors.
Under the terms of the agreement, which has been approved by both companies’ Boards of Directors, Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Current Tyco shareholders will own approximately 44 percent of the equity of the combined company.
Under the terms of the proposed transaction, the businesses of Johnson Controls and Tyco will be combined under Tyco International plc, which will be renamed “Johnson Controls plc.” Upon the closing of the transaction, the combined company is expected to maintain Tyco’s Irish legal domicile and headquarters in Cork, Ireland.
