Tyco International Ltd
) recently procured an enterprise framework agreement (EFA) from
Shell Global Solutions International, a subsidiary of Royal Dutch
Shell plc(RDS-A) to provide fire protection products, engineered
systems and lifecycle services across the globe.
As a part of this agreement, Tyco will provide safety and
security services for Shell's onshore and offshore sites in the
Americas, Asia and Australia/New Zealand. Tyco has formed a
Program Management Office (PMO) to provide guidance during
installation and service delivery. The PMO promotes
standardization, drives EFA compliance, identifies future
innovations and creates templates for implementation of contracts
We are bullish on the company's fortunes based on the relative
stability of the global security and fire markets as well as high
and predictable cash generation, limited balance sheet risk and
easy cost-out opportunities. There is a potential catalyst in the
company's solid balance sheet and liquidity position.
In the last reported quarter, Tyco signed an agreement to
purchase National Fire Solutions Group (NFS) - a provider of fire
protection services in Australia, including installation,
inspection and maintenance services. National Fire is expected to
have revenues of $65 million in 2014. Post acquisition, it will
be integrated with Tyco's Fire Services business. The company has
been continuous expanding its Fire Services business to augment
Tyco provides latest fire protection and security products and
services to more than three million customers across the globe.
Tyco has more than 70,000 employees in more than 1,000 locations
across 50 countries, serving various end markets, including
commercial, institutional, governmental, retail, industrial and
energy, residential and small business.
Tyco currently has a Zacks Rank #3 (Hold). Other stocks that
look promising and are worth a look now are
Honeywell International Inc
Macquarie Infrastructure Company LLC
) each having a Zacks Rank #2 (Buy).
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