Breakup to turn Tyco into three companies

Tyco International Ltd. said Monday it plans to separate into three independent, publicly-traded companies, a move that will mark its second breakup since 2007.

The company will create an ADT North America residential security business and separate companies for flow control products and commercial fire and security. Tyco said the new companies will have greater flexibility to pursue their own growth strategies than they would under the current corporate structure.

The ADT business, which provides security and fire alarm systems for homes and small businesses, will be incorporated in the United States. It has annual revenue of about $3 billion and about 16,000 employees.

The flow control business sells valves and controls for the energy, mining and water markets. It also designs and installs heat management systems for the energy and general process industries.

In 2007, a scandal-plagued Tyco International Ltd. transitioned from an unwieldy conglomerate with annual revenue of $41 billion into three separate, public companies. It spun off its Covidien health care and Tyco Electronics businesses in a tax-free distribution to shareholders to focus on fire and security and engineered products.

Tyco’s board has unanimously approved the latest breakup plan, and the company expects to complete the deal in about a year. Tyco directors will serve on the boards of all three companies.