NEW YORK, Jan 13: Industrial giant Tyco International said on Friday it was splitting into three separate companies — in health products, electronics, and fire protection and security.

The company, emerging from a scandal that resulted in the indictment of its top executives, said the move would create more value and potential for shareholders.

Tyco, which has its headquarters in Bermuda for tax reasons but operates similar to a US company, said the split would create three publicly traded companies by the first quarter of 2007.

“In the past several years, Tyco has come a long way,” said Tyco chairman and chief executive Ed Breen, who took over after the company forced out Dennis Kozlowski in a major corporate scandal. Kozlowski was sentenced last year to 25 years in prison on charges of looting the firm of hundreds of millions of dollars.

Breen added: “Our balance sheet and cash flows are strong and many legacy financial and legal issues have been resolved. We are fortunate to have a great mix of businesses with market-leading positions.”

The split, said Breen, “is the best approach to enable these businesses to achieve their full potential.”

Tyco Healthcare posted 2005 revenues of nearly $10 billion and produces surgical instruments and supplies, diagnostic imaging products and other medical equipment. The unit chief, Rich Meelia, will become the company’s chief executive.

Tyco Electronics — described as one of the world’s largest suppliers of electronic components, with some $12 billion in revenues — produces connectors, switches, wire and cable, as well as fibre-optic and wireless components. It will be headed by Tom Lynch, current president of Tyco’s engineered products and services.

Tyco’s fire and security division will be headed by Breen. With some $18 billion in revenues, it makes electronic security systems, fire protection and sprinkler systems, and industrial valves and controls.—AFP