TYCO ELECTRONICS TO SELL POWER SYSTEMS
Tyco Electronics Ltd. announced that the company has
entered into a definitive agreement to sell the Tyco
Electronics Power Systems business to The Gores Group
LLC for $100 million in cash, subject to a final working
capital adjustment. The transaction is expected to close
by the end of calendar 2007 or early in 2008.
Tyco Electronics announced earlier this year its intent
to sell its Power Systems business. In anticipation of
the sale and beginning in the third fiscal quarter of
2007, the Power Systems business was classified as a
discontinued operation and the results of the segment
were reported accordingly. Tyco Electronics Power
Systems, with approximately 2,500 employees across 14
locations in eight countries, is a leading manufacturer
of power solutions, including board-level conversion
components and complete power conversion and backup
power systems for telecom applications.
The sale of the Power Systems business is consistent
with Tyco Electronics' strategy to divest certain busi-
nesses in an effort to streamline its portfolio and
reallocate resources to its core operations.
Tyco had paid approximately 2.5 billion dollars to
acquire Lucent Technologies' Power Systems business unit
(LPS) from Lucent Technologies Inc. in 2000.
Completion of the transaction is subject to customary
closing conditions.