Exhibit 99.1
FOR IMMEDIATE RELEASE
Wednesday, October 18, 2000
CONTACTS:
Investor Relations Media Relations
J. Brad McGee Judith Czelusniak
Executive Vice President, Senior Vice President,
Chief Strategy Officer Corporate Relations
Tyco International (US) Inc. Tyco International (US) Inc.
(603) 778-9700 (561) 988-7424
TYCO COMPLETES PURCHASE OF MALLINCKRODT
Acquisition Will Have Immediate Positive Impact on Earnings;
Strengthens Tyco Healthcare's Leading Positions in Medical Devices
Pembroke, Bermuda, October 18, 2000 - Tyco International Ltd. (NYSE: TYC; LSE:
TYI; BSX: TYC), a diversified manufacturing and service company, today announced
that it has completed the acquisition of Mallinckrodt Inc. Under the terms of
the merger agreement, Mallinckrodt shareholders will receive .9384 shares of
Tyco common stock for each share of Mallinckrodt owned. The transaction is
valued at approximately $4.2 billion. Mallinckrodt, which had 1999 revenues of
$2.6 billion, has major positions in respiratory care, diagnostic imaging and
analgesic pharmaceuticals.
"The Mallinckrodt acquisition will be immediately accretive to Tyco's earnings,"
according to L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer.
"It offers consolidation opportunities as well as significant manufacturing,
purchasing and distribution synergies. Our past acquisitions in Tyco Healthcare
have achieved strong top line growth and operating efficiencies. The acquisition
of Mallinckrodt also will provide ongoing positive benefits to Tyco
shareholders.
"Tyco has a strong history of success in building leadership positions in the
healthcare industry. Tyco Healthcare has grown to be a powerful force in
disposable medical supplies and medical devices through previous acquisitions of
such industry brands as Kendall, United States Surgical, Auto Suture, Sherwood,
Davis & Geck, Graphic Controls and ValleyLab. With the addition of Mallinckrodt,
Tyco Healthcare becomes the second-largest manufacturer, distributor and
servicer of medical devices worldwide, and the leader in bulk analgesic
pharmaceuticals," Mr. Kozlowski stated.
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This acquisition makes Tyco Healthcare the leader in the fast growing global
respiratory care arena, with products such as Mallinckrodt endotracheal tubes,
Shiley tracheostomy tubes, Nellcor pulse oximeters, Puritan-Bennett ventilators,
and new technologies including the recently launched OxiFirst fetal oxygen
monitor and HELiOS liquid oxygen system. Mallinckrodt also is a leader in
developing new products in the growing alternate care markets for home oxygen
therapy, sleep therapy and portable ventilation. In diagnostic imaging,
Mallinckrodt has leadership positions in imaging contrast agents and
radiopharmaceuticals, including Opitray and OptiMark. Pharmaceutical products
include leadership positions in bulk pharmaceuticals and a rapidly growing
dosage product line.
"The combined strength of Mallinckrodt's products and Tyco's global sales and
service organization will allow Tyco Healthcare to leverage its international
infrastructure and enhance penetration in key geographic markets," stated Mr.
Kozlowski. "Mallinckrodt's strong positions in the respiratory, pharmaceuticals
and diagnostic imaging segments will provide Tyco with excellent platforms for
future acquisitions and licensing agreements."
About Mallinckrodt
Mallinckrodt is a global manufacturer and distributor of specialty medical
products designed to sustain breathing, diagnose disease and relieve pain.
Mallinckrodt does business in more than 100 countries and had fiscal 1999 net
sales of $2.6 billion. Mallinckrodt is the industry leader in respiratory care
products, including those used for oxygen monitoring, critical care ventilation
and service as well as airway management disposables. In pharmaceuticals,
Mallinckrodt is the number one manufacturer of bulk narcotics and other drug
chemicals, and is the world's largest producer of acetaminophen. The growing
dosage pharmaceutical segment is focused on pain management, addiction therapy
and attention deficit hyperactivity disorder (ADHD). Mallinckrodt also provides
laboratory and microelectronic chemicals. Its imaging products include contrast
media used in x-ray, magnetic resonance imaging (MRI), computer axial tomography
(C-T) and ultrasound diagnostic procedures. Mallinckrodt's radiopharmaceuticals
are used for diagnostic and therapeutic nuclear medicine procedures.
About Tyco International Ltd.
Tyco International Ltd. is a diversified manufacturing and service company. Tyco
is the world's largest manufacturer and servicer of electrical and electronic
components and undersea telecommunication systems, and the world's largest
manufacturer, installer and provider of fire protection systems and electronic
security services. Tyco has strong leadership positions in disposable medical
products, plastics and adhesives, and is the world's largest manufacturer of
flow control valves. Tyco operates in more than 80 countries and has expected
fiscal 2000 revenues of $28 billion.
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Forward-Looking Information
This release contains certain "forward-looking statements" within the meaning of
the Private Securities Litigations Reform Act of 1995. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may vary materially from the
expectations contained in the forward-looking statements. The forward-looking
statements in this release include statements addressing future financial and
operating results and benefits of the acquisition.
The following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements: the risk that
the businesses of Tyco and Mallinckrodt will not be integrated successfully, and
other economic, business, competitive and/or regulatory factors affecting Tyco's
and Mallinckrodt's businesses generally.
More detailed information about these factors is set forth in Tyco's and
Mallinckrodt's filings with the Securities and Exchange Commission, including
Tyco's Annual Report on Form 10-K, as amended, for the fiscal year ended
September 30, 1999, Mallinckrodt's Annual Report on Form 10-K for the fiscal
year ended June 30, 1999, their most recent Quarterly Reports on Form 10-Q, as
amended, and their Current Reports on Form 8-K. Tyco is under no obligation to
(and expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information, future events
or otherwise.
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