MILWAUKEE — The sale of Scott
Safety by Johnson Controls has been completed.
The transaction with purchaser
3M was worth about $2 billion, according to the company
announcement. Scott Safety is a leader in high performance
respiratory protection, gas and flame detection, thermal imaging and
other critical products and is expected to generate sales of
approximately $575 million and earnings before interest, taxes,
depreciation and amortization of approximately $160 million in
According to the announcement,
net cash proceeds from the transaction were $1.9 billion, and will
be used to repay a portion of Tyco International Holding Sarl’s $4
billion of merger related debt.
For fiscal 2018, dilution
related to the sale of Scott Safety is expected to be fully offset
by lower net financing charges, a lower effective tax rate resulting
from the transaction, as well as the benefit of share repurchases
completed in fiscal 2017.