|
Tyco secures alarm company
|
 |
January 11, 1999: 12:26 p.m. ET
ADT unit buys Alarmguard, adding to electronic security holdings
|
NEW YORK (CNNfn) - Tyco International Ltd. continues to add to its electronic-security holdings with a definitive agreement to buy Alarmguard Holdings Inc., a home security system provider in the Northeast and Mid-Atlantic states.
Tyco (TYC), the parent of the ADT Security business, recently acquired Holmes Protection and Wells Fargo Alarm, and is in the process of buying the security operations of Entergy.
The transaction sets a $9.25 a share value on Alarmguard (AGD), to be paid in cash by the Bermuda-based Tyco. With about 5.6 million shares outstanding, the transaction values Alarmguard at about $51.5 million.
"We expect to create significant value by taking Alarmguard's local expertise in the high-end residential market and applying it to our national franchise," says Tyco chairman Dennis Kozlowski. "The transaction will have an immediate positive impact on earnings per share."
ADT's competitors in the electronic security business include Brinks Home Security, a unit of Pittston Brinks (PZB), and Honeywell (HON).
Tyco International shares are down 5/8 to 75-7/16 in late Monday morning trading. The American Stock Exchange-traded Alarmguard, based in Orange, Conn., were down 11/16 to 9-1/16. 
|
|
|
|
|
 |
|
