Tyco International announced that it has reached an agreement to acquire Industrial Safety Technologies (IST), a global leader in gas and flame detection, from Battery Ventures, for $329.5 million in cash.
The combination of IST with Tyco's Scott Safety unit will make Tyco one of the largest global designers and manufacturers of gas and flame detection products. IST holds a technology leadership position in the gas and flame detection industry and is committed to innovating in industrial safety solutions, such as its groundbreaking wireless gas-detection technology. IST brings strong market presence in Europe, the Middle East, and the U.S. Gulf Coast region to complement Scott Safety's detection business.
"We are committed to providing our customers with a full range of safety solutions," said Andrew Chrostowski, President, Scott Safety. "The addition of IST reinforces this commitment and establishes Scott Safety as a world leader in gas detection. Each of IST's businesses provides a unique set of detection capabilities that will enable us to accelerate new product development, expand our geographic presence, deepen our technical expertise and broaden our product offerings and service capabilities."
On an annualized basis, the addition of IST to Tyco's operations is expected to generate approximately $140 million in revenue.
This transaction, which is subject to customary closing conditions, is expected to close in Tyco's fiscal second quarter.