Tyco CFO Discusses Restructuring
LONDON
Tyco CFO David FitzPatrick has shed a bit more light into Tyco’s restructuring and cost-saving plan, though has still not revealed which security businesses Tyco plans to divest.
In an interview with London’s Financial Times, FitzPatrick says he hopes to cut Tyco’s $21.6 billion long-term debt in half within “a couple of years.” Until then, the company plans to stay away from strategic acquisitions.
Tyco announced Nov. 4 a plan to divest itself of at least 50 of its businesses – half of which will be in the Fire and Security segment. In addition, Tyco announced a restructuring of its Fire and Security division that will include the release of 5,000 employees.
FitzPatrick says Tyco is pursuing at least $3 billion in cost savings during the next three years and said he would use Tyco’s cash when its debt levels fell to $10 billion to $12 billion, which is “out a couple of years,” FitzPatrick told the Times.
Tyco is the parent company of ADT, SimplexGrinnell and Sensormatic, among other electronic security companies.
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