What Are The Benefits Johnson Controls Will Attain From The Tyco Merger?

+4.90%
Upside
63.69
Market
66.81
Trefis
JCI: Johnson Controls logo
JCI
Johnson Controls

Under the terms of the JCI-Tyco merger agreement, Johnson Controls’ shareholders will hold a 56% equity stake in the combined company, and will receive a cash consideration of ~$3.9 billion, with Tyco owning approximately 44% of the equity. The combination of highly complementary businesses facilitates the new company to offer comprehensive and innovative solutions to a wider market globally, across numerous end markets. The main purpose of the merger seems to be gaining size in its area of focus, which is becoming a colossus in the building controls and equipment market. The new company will be able to witness immediate opportunities for growth, through cross-selling of products, complementary distribution networks, and a widened global reach.

Benefits To Be Received From The JCI-Tyco Merger:

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Key Elements of The Merged Company’s Cost Synergy & Productivity Plans:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Johnson Controls.