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TYCO (1982- New CEO - Fort, decreased debt from 119 to 8% of shareholder…
TYCO (
1982- New CEO - Fort, decreased debt from 119 to 8% of shareholder equity by liquidating shares to gain profit, and selling off unrelated businesses using proceeds to pay off debt.Reorganised company into 3 core segments all centred around a leading company:
- Fire Protection and Flow Control
- Packaging Materials
- Electronics and electronic components
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1973 new CEO Gaziano - aggressive takeover strategy to build $1bn conglomerate.,
1992 - Kozlowski CEO - Tyco International
Split Fire/Flow (which was 4x larger than other segments) into 2 divisions
Goals:
- double EPS "5 in 5"(up 15% each year)
- reduce cyclicality. Bring other 2 divisions up to equal fire and flow.
Economies of scale and improve competitive position by consolidating the industry through strategic acquisitions
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Acquisition Process ,
START HERE & MOVE CLOCKWISE)