Diversified manufacturer Tyco International (NYSE:TYC) announced on Monday its plans to split into three independent corporations, all of which will be publicly-traded.
The move will mark the second breakup of the manufacturer since 2007, when the company was also split into thirds, spinning off Covidien health care unit and Tyco Electronics.
The latest split will create one company geared towards residential security, which will be called ADT North America, and two others which will handle flow control and commercial security, respectively.
ADT, which currently has annual revenue of $3 billion, will be incorporated in the United States, Tyco said in a release. The companys flow control business as well as the commercial security business will be incorporated in Switzerland.
The breakup has already been unanimously approved by Tyco's board, and the deal is expected to be complete in the next year.
Transaction costs totaling around $700 million are expected to be incurred once the deal goes through, owing to restructuring and refinancing costs.