Breen has gone on to engineer DuPont Co.'s merger with Dow Chemical Co.
Breen, the former General Instruments cable salesman who headed West Windsor-based Tyco, broke that conglomerate into pieces in response to the former conglomerate's sagging share price. The move follows TE Connectivity's long string of asset sales since it was spun off in 2006 from the former Tyco International Ltd. While SubCom is "a leader" in the global business of connecting the internet worldwide, it is also a cyclical business with only modest profit margins and uncertain growth, he added.īy contrast, most other TE Connectivity divisions produce small electrical components - or, increasingly, groups and assemblies of components - for large manufacturing and repair markets, such as cars, trucks, and aerospace, and for fast-growing sectors such as electric-vehicle and medical applications. SubCom was "distinctly different from the rest of TE's connectivity and sensor portfolio," chief executive Terrence Curtin said in a statement announcing the sale. factories and also have plants and customers in China and other foreign markets, the company has faced questions from investors about global demand since the Trump administration began raising import taxes (tariffs) and foreign governments retaliated with fees on U.S. Like other industrial companies that operate U.S. TE Connectivity shares topped $100 for the first time in January but closed Friday at $91.77. The seller will use the money to buy back shares, a common move by companies that find the impact on shareholder returns at least as favorable as acquisitions or research and development. The deal is scheduled to close later this year. "The deal removes this overhang," and will boost profitability and growth for the company's remaining businesses in its data and devices and appliances unit, Holt said. "Program delays" from SubCom hurt TE Connectivity profit margins in its most recent earnings report, wrote David Holt, analyst for CFRA Research, in a report to clients. TE had revenue of $13 billion in fiscal 2017. TE Connectivity said the business, with offices in Eatontown, N.J., and ships based in Baltimore and Portsmouth, N.H., was "minimally" profitable. The price was not quite half the value of SubCom's yearly sales, which total around $700 million. MICHAEL BRYANT / Staff Photographer, The Philadelphia Inquirer Terrence Curtin, TE Connectivity CEO, seen with a transparent car, showing all the connectors they manufacture, that go into your automobile. The buyer of SubCom, which rolls cable across the ocean floor for Google, Facebook, and other large tech and telecom enterprises from its specially-designed ships, is Cerberus Capital Management LP, a Washington-based private-equity giant that owns Acme Markets and other companies. headquarters and executive offices in Berwyn, said Monday that it had reached an agreement to sell its undersea communications business, called SubCom, for $325 million. TE Connectivity, a maker of electrical connectors and sensors based in Switzerland with U.S. TE Connectivity sells global ocean cable unit, bets on sensors
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