Tyco Int'l To Acquire Industrial Safety Technologies From For $329.5 Mln In Cash

(RTTNews) - Fire protection and security company Tyco International Ltd. (TYC) agreed Wednesday to acquire gas and flame detection company Industrial Safety Technologies or IST, from venture capital firm Battery Ventures L.P. for $329.5 million in cash. The deal, which is subject to customary closing conditions, is expected to close in Tyco's fiscal second quarter.

The deal will see Cork, Ireland-based Tyco expand its gas and flame detection capabilities and become one of the largest global designers and manufacturers of gas and flame detection products.

"Each of IST's businesses provides a unique set of detection capabilities that will enable us to accelerate new product development, expand our geographic presence, deepen our technical expertise and broaden our product offerings and service capabilities," Tyco's Scott Safety Unit President Andrew Chrostowski said in a statement.

IST has a leadership position in the gas and flame detection industry and is committed to innovating in industrial safety solutions with its groundbreaking wireless gas-detection technology. On an annualized basis, IST is expected to add about $140 million in revenue to Tyco's operations.

IST will be combined with Tyco's Scott Safety unit, and will complement Scott Safety's detection business. Tyco will also take advantage of IST's strong market presence in Europe, the Middle East, and the U.S. Gulf Coast regions.

"We are committed to providing our customers with a full range of safety solutions. The addition of IST reinforces this commitment and establishes Scott Safety as a world leader in gas detection," Chrostowski added.

In Wednesday's regular trading session, TYC is currently trading at $43.19, down $0.17 or 0.39% on a volume of 0.37 million shares.