Tyco International Ltd. (TYC) filed documents with the Securities & Exchange Commission to spin off its Electrical & Metal Products division, which accounted for about 8% of its revenue last year. The company previously announced plans to spin off the unit in April.
Tyco said Tuesday that it established a wholly owned unit, Allied Holdings US Inc., specifically as the entity that will be spun off through tax-free distribution of shares to Tyco stockholders. The division will be spun off by the end of next March.
Tyco is spinning off a division that specializes in making products such as galvanized steel tubes and pipes, armored wire and cable, and other building components. The unit turned an operating profit of $40 million for the quarter ended June 25, compared with an operating loss of $16 million a year earlier, as the division's revenue surged 22%, Tyco said in late July.
Tyco said in April that it would spin off the unit, whose disposition would be structured as a tax-free stock distribution to Tyco shareholders.