Tyco International to Spin off Flow Control Unit and Combine it with Pentair (TYC, PNR)

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Diversified manufacturer Tyco International Ltd. ( TYC ) announced Wednesday it would break off its flow control products unit and merge that unit with fellow flow control specialist Pentair Inc. ( PNR ).

The deal values Tyco Flow at $4.53 billion. Tyco Internation will own 52.5% of the newly-combined company, while Pentair investors will own the rest. The transaction is expected to be tax-free to investors of both companies.

This move comes as part of Tyco's September announcement that it planned to split its company up into three pieces.

Tyco shares jumped $1.62, or +3%, in premarket trading Wednesday.

The Bottom Line
Shares of Tyco International ( TYC ) have a 2.54% dividend yield, based on last night's closing stock price of $53.53. The stock has technical support in the $50 price area. If the shares can firm up, we see overhead resistance around the $60 price level.

Tyco International Ltd. ( TYC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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