With the Milwaukee area set to be the operational headquarters for the combined company created by the Johnson Controls-Tyco International merger, the city will benefit from the relocation of some of Tyco’s operations.
The deal announced Monday calls for the combined company to have its global headquarters in Ireland but operational headquarters in the Milwaukee area. Placing the global headquarters in Ireland, where Tyco is based, will save Johnson Controls $150 million a year in taxes.
Johnson Controls spokesman Fraser Engerman said Tuesday the designation of Milwaukee as the operational headquarters means positions related to Tyco’s operational headquarters in Princeton, N.J. would move to Milwaukee. Engerman told BizTimes the company sees the deal “as having a lot of upside for Milwaukee,” although he declined to provided details on how the merger will impact job numbers in the Milwaukee area. The company currently has about 3,400 employees in the Milwaukee area and 130,000 worldwide.
He also said Tyco chief executive officer George Oliver would be relocating to Milwaukee once the deal closes.
The agreement between the two companies calls for Oliver to serve as president and chief operating officer for the first 18 months after the merger with Johnson Controls CEO Alex Molinaroli serving as chairman and CEO. After 18 months, Oliver will become chief executive officer. After another 12 months, he will become chairman and chief executive officer.
