ADT 2000 Annual Report Download - page 71

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SIXTY NINE
[2 5 ] Subsequent Events
On October 4, 2000, the Company entered into an agreement to
acquire InnerDyne, Inc. (“InnerDyne”), a manufacturer and distrib-
utor of patented radial dilating access devices used in minimally
invasive medical surgical procedures. The purchase price is approx-
imately $180 million payable in Tyco common shares. InnerDyne will
be integrated within Tyco’s Healthcare business. Tyco intends to
account for the acquisition as a purchase.
On October 6, 2000, the Company sold its ADT Automotive
business to Manheim Auctions, Inc., a wholly-owned subsidiary of
Cox Enterprises, Inc., for approximately $1 billion in cash. The sale
is expected to generate a one-time pre-tax gain to the Company in
excess of $300 million in the first quarter of Fiscal 2001.
On October 17, 2000, the Company acquired Mallinckrodt Inc.
(“Mallinckrodt”), a global healthcare company with products used
primarily for respiratory care, diagnostic imaging and pain relief.
The Company issued approximately 64.8 million common shares,
valued at approximately $3.2 billion, and assumed approximately
$1.0 billion in debt. Mallinckrodt is being integrated within the Com-
pany’s Healthcare business. The Company is accounting for the
acquisition as a purchase.
On November 13, 2000, the Company agreed to acquire the
Lucent Power Systems (“LPS”) business unit of Lucent Technolo-
gies, Inc. for $2.5 billion in cash. LPS provides a full line of energy
solutions and power products for telecommunications service
providers and for the computer industry and will be integrated
within the Electronics segment. LPS products include AC/DC and
DC/DC switching power supplies, batteries, power supplies and
back-up power systems. The acquisition is subject to customary
regulatory approvals.
On November 17, 2000, the Company completed a private
placement offering of $4,657,500,000 principal at maturity of zero-
coupon debt securities due 2020 for aggregate net proceeds of
approximately $3,374,000,000. Each $1,000 principal amount at
maturity security was issued at 74.165% of principal amount at
maturity, accretes at a rate of 1.5% per annum and is convertible
into 10.3014 Tyco common shares if certain conditions are met. The
Company may be required to repurchase the securities at the
accreted value at the option of the holders on November 17, 2001,
2003, 2005, 2007 or 2014. The proceeds of this offering will be
used to finance the LPS acquisition and to repay commercial paper.
On December 4, 2000, the Company agreed to acquire Simplex
Time Recorder Co. (“Simplex”) for approximately $1.15 billion in
cash. Simplex manufactures fire and security products and com-
munications systems including control panels, detection devices
and system software. Simplex also installs, monitors and services
fire alarms, security systems and access control systems and will be
integrated within the Fire and Security Services segment. The
acquisition is subject to customary regulatory approvals.