Tyco International, a worldwide security company with headquarters in Princeton, New Jersey, announced this week that its shareholders have approved the spinoff of both its North American ADT Security Services business and its flow control business. The company stated that it has already completed equity intrest distribution to shareholders of record. Tyco shareholders also elected two new directors and approved two cash dividend payments: one for $0.15 per share per quarter paid on November 15, 2012 and February 20, 2013.
The shareholder vote for the spinoffs came the same day that the Anti-Monopoly Bureau of China's Ministry of Commerce cleared the merger of Tyco Flow Control and Pentair, a Minnesota-based water technology company. The merger will be a tax-free, all-stock merger.
As a result of the spinoffs of ADT and Tyco Flow Control, the company updated its fourth quarter guidance. While guidance for its flow control segment remains unchanged, difficulties in its other two business segments have shifted forecasts. Tyco's fire and security segment now expects an operating margin of 11.2% to 12% due to "certain aged receivables related to security contracts in China" not being collectible. As for the ADT North American residential and small business segment, its operating margin forecast has declines to 23.5% to 23.75% due to settling a law suit "related to" the Telephone Consumer Protection Act.