DOW JONES NEWSWIRES
Tyco International Ltd. (TYC) will acquire Brink's Home Security
Holdings Inc. (CFL), operating as Broadview Security, in a cash and
stock deal that values Brink's at about $2 billion and brings
together two North American security companies.
Under the agreement, for each Brink's share held, holders may
elect to receive $42.50 in cash, subject to conditions; a
combination of $12.75 in cash and a fraction of a Tyco share equal
to $29.75; or Tyco shares equal to $42.50. Following the closing of
the transaction, Tyco intends to combine Broadview with Tyco's ADT
security business.
Excluding transaction and integration-related expenses, Tyco
expects the transaction to increase earnings before special items
by about 7 cents a share in the first full year after closing,
increasing to about 14 cents a share in the second year. The
combination is expected to result in operating synergies of about
$150 million.
Separately, Tyco raised its guidance for first-quarter earnings
per share from continuing operations before special items to 63 to
65 cents a share from its previous forecast of 48 to 50 cents. On a
GAAP basis, it expects to record earnings of 61 to 63 cents a share
in the first quarter.
Preliminary results for the first quarter also include revenue
of $4.25 billion, ahead of its previous guidance of $4.1
billion.
Tyco said that although the first-quarter was better than
expected, order activity continues to be relatively flat. As a
result, Tyco is maintaining its guidance for full year earnings
before special items of $2.30-$2.50 a share.
Brink's is based in Irving, Texas. Tyco, which is based in
Schaffhausen, Switzerland, closed at $37.54 in New York Friday;
Brink's closed at $31.42. The New York Stock Exchange was closed
Monday for the Martin Luther King Jr. Day holiday.
-By Tara Zachariah, Dow Jones Newswires; 416-306-2100;
tara.zachariah@dowjones.com