Milwaukee, WI-based Johnson Controls (NYSE: JCI) and Cork, Ireland-based Tyco (NYSE: TYC) have agreed to merge. Johnson Controls, a global multi-industrial company, will combine with Tyco, a global fire and security provider, to create a company focused on building products and technology, integrated solutions and energy storage.
Under the terms of the agreement, which has been unanimously approved by both companies' Boards of Directors, Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company.
"The combination of Tyco and Johnson Controls is a highly strategic, value-enhancing step that brings together the unique strengths of two great companies to deliver best-in-class building technologies and services to customers around the world," said George R. Oliver, CEO, Tyco. "We believe this transaction will allow us to better capture opportunities created by increased connectivity in homes, buildings and cities."
Alex Molinaroli, current CEO of Johnson Controls, will serve as CEO of the combined company. Oliver will serve as president and COO, with responsibility for the operating businesses and leading the integration.
The businesses of Johnson Controls and Tyco will be combined under Tyco International plc, which will be renamed Johnson Controls plc. The companies expect that shares of the combined company will be listed on the New York Stock Exchange and trade under the "JCI" ticker.
Upon the closing of the transaction, 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 for the combined company will be in Milwaukee, where Johnson Controls has been based.