Diversified manufacturing and services company Tyco International plans to buy leasing group, CIT for about $9.2 billion in order to add a large financing component to its broad array of businesses.
Tyco, whose businesses include electronics, fire and security systems, disposable medical supplies and flow-control products such as valves, said the deal has a value of about $9.2 billion, based on the company's closing stock price of $50.70 on the New York Stock Exchange.
The company said the latest deal would add immediately to its earnings and that CIT's financing and leasing capacities would greatly boost its existing businesses, including its infrastructure development, undersea fiber optic networking, and security technology arms.
CIT's closing price yesterday was slightly below its 52-week high of $24.40. The year low is $13.31. In the past year, Tyco shares have ranged from $41 to $63.21.