Siemens Sheds Components Business

12:03 PM ET 09/28/99

MUNICH, Germany (AP) - Siemens AG said today it has agreed to sell its electromechanical components business to Tyco International Ltd. for $1.1 billion. The transaction, which is still subject to antitrust approval, completes Siemens' plan to leave the components business. Siemens chief financial officer Heinz-Joachim Neubuerger said Tyco was the most suitable of more than 40 bidders for the electromechanical components business, which has 12,400 employees worldwide.

Tyco, based in Exeter, N.H., is the world's largest maker of electrical and electronic components. It expects 1999 sales over $22 billion.

The company said in a press release Tuesday that it sees ``a significant immediate positive impact to earnings'' from the acquisition.

Last year, Siemens Electromechanical Components had sales of $806 million.

Neubuerger said he expects the sale to Tyco to be closed by the second quarter of fiscal 2000.

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