Raychem to Merge with Tyco Subsidiary
Tyco International (Hamilton, Bermuda) and Raychem Corp. (Menlo Park, CA) have entered an agreement under which Raychem will merge with a Tyco subsidiary. The transaction is valued at $37 per share to the Raychem shareholders or $2.87 billion based on Tyco's May 18, 1999 closing price on the New York Stock Exchange of $89.375. Tyco will pay $1.4 billion in cash and 16.1 million newly issued Tyco shares based on Raychem's 77.6 million outstanding commons shares. "Raychem's products, international presence, and customers are all highly complementary with Tyco's particularly those of our AMP subsidiary," stated Tyco Chairman and CEO L. Dennis Kozlowski. "This acquisition will provide opportunities for both significant cost reductions, as well as enhanced growth through an expanded product line, new customers and marketing efficiencies.