JCI to Acquire Tyco International?

Johnson Controls Inc. is in advanced talks to buy fire protection and security systems provider Tyco International plc, sources tell The Wall Street Journal.

The deal, which could be announced as early as today, is likely to be valued at about $20 billion, according to the newspaper.

Tyco is a $10 billion company incorporated in Ireland and run from a headquarters in Princeton, N.J. Milwaukee-based JCI, which generates worldwide sales of $37 billion, supplies vehicle automotive batteries, seating and interior components and building climate systems.

Alex Molinaroli, who took over as CEO at JCI in 2013, has been eager to minimize the cyclical nature of the automotive business by expanding into other industries. Last week the company said it will spin off its automotive seating and interiors unit—which currently contributes more than half its revenue—in October.

The new company, to be called Adient, will begin functioning independent of JCI in July. Bruce McDonald, currently vice chairman of JCI, will become chairman and CEO of Adient.

Today’s Tyco is the remainder of the conglomerate broken up in 2007 after its CEO, Dennis Kozlowski, was convicted of looting the company. His successor, CEO Edward Breen, spun off Tyco’s medical products and electronic components businesses and focused the core company on fire, security and video surveillance systems for commercial properties.