Tyco creates separate healthcare unit

Thursday, January 31, 2002

PEMBROKE, Bermuda - Looking to boost shareholder value, Tyco International broke into four distinct business units last month, one of them its $7.1 billion healthcare division, which includes respiratory products manufacturer Mallinckrodt.

The company's other divisions include fire protection and flow control ($7.6 billion), financial services ($5.4 billion), and securities and electronics ($17.6 billion).

"As independent, public companies, each of these businesses will offer investors a 'pure-play' opportunity with excellent growth prospects and greatly increased simplicity, clarity and transparency," stated CEO L. Dennis Kozlowski. "As such, we believe each will be valued substantially higher than the implied valuations it has received in recent years as part of Tyco."

Tyco's healthcare division is the second largest medical device provider in the world, trailing only J&J. It includes U.S. Surgical (woundcare), ValleyLab (ultra sonic surgery systems), Kendall Healthcare (incontinence products) and Mallinckrodt (respiratory therapy).

Tyco is in the process of acquiring C.R Bard. HME