Tyco International Ltd. of Exeter, N.H., announced an agreement May 15 to buy Phoenix-based Carlisle Plastics Inc., a major manufacturer of plastic film, sheet and garment hangers, in a stock deal worth $120.5 million. The definitive merger agreement calls for Tyco to issue 0.172185 shares of its stock for each of Carlisle's 17.88 million outstanding shares, which approximates 3.1 million shares of Tyco. Based on stock prices at the close of business May 14, prior to the announcement, the deal has a $120.5 million value.
``We saw this as an excellent opportunity to complement our broad range of products within our disposable and specialty products division,'' said David Brownell, Tyco senior vice president.
``We have a very large range of products from industrial and institutional to agricultural and commercial within the plastics area.''
The merger is subject to regulatory approval, but has been approved by the boards of both firms and is expected to be consummated by Sept. 1.
Tyco's plastic products include diverse items such as greenhouse covers, flexible irrigation pipe and newspaper bags. Carlisle's product range includes shrink and barrier films for the food, electronics, building and construction, agricultural, and industrial markets, trash bags, liners, and pallet wrap.
Brownell said Carlisle will become part of Tyco's disposable and specialty products division, with annual sales of $1.5 billion, which also includes Armin Plastics of Jersey City, N.J., a major plastic film and sheet producer.
Armin ranked 13th in Plastics News' 1995 survey of North American film and sheet manufacturers, with estimated yearly sales
of $305 million. Carlisle ranked 16th in the same survey with sales of $235 million per year. In addition, Carlisle had an estimated $140.7 million in sales from injection molded plastic garment hangers and an estimated $31 million in blow molding sales. However, early this year, Carlisle announced plans to divest its container blow molding business. Carlisle's total 1995 sales were $426.3 million.
Other divisions of Tyco, which had worldwide sales of more than $4.5 billion, include the fire protection division, which manufactures fire detection and extinguishing products, the flow-control division, which makes pipes, fitting, valves, and metal specialties, and the electrical and electronic components division, which makes conduit, fiber-optic cable circuit boards and other electronic parts.
The merger comes at a time of major upheaval and consolidation among film and sheet industry giants.
Last year, Packaging Corp. of America, a Chicago-based unit of the petrochemical giant Tenneco Inc. of Houston, bought the plastic film division of Mobil Chemical Co., forming Tenneco Packaging Co.
This year, Atlanta-based Print-pack Inc. purchased the plastic packaging division of Rich-mond Va.-based James River Corp., and Toray Industries Inc. of Tokyo bought the polyester film business of Rhine-Poulenc SA of Lyon, France.
Brownell said it is too early to say what changes or expansions might result from the Carlisle acquisition.