Tyco takes over Mallinckrodt

Boston, June 29: Manufacturing conglomerate Tyco International Ltd said on Wednesday it would buy health equipment firm and medical narcotics importer Mallinckrodt Inc in a $4.2 billion deal that would make it the world’s No. 2 medical device maker.

"We’re seeing plenty of opportunities out there," Tyco chief executive Dennis Kozlowski said in a conference call. Mallinckrodt has major positions in respiratory care, diagnostic imaging and narcotics. It imports 60 per cent of the opium used for medical purposes in the US, Tyco executives told analysts.

Mallinckrodt shares rose 2-5/8 to close at 31-3/8 on the New York Stock Exchange on Wednesday. Tyco fell 15/16 to close at 46-5/16. "The Mallinckrodt acquisition will be immediately accretive to Tyco’s earnings," Kozlowski said in a statement. "It offers consolidation opportunities as well as significant manufacturing, purchasing and distribution synergies."