With the forthcoming split of Tyco into three separate businesses this September, the unit that has been operating as ADT Commercial in the Americas and globally is announcing a phase in of a new name. The company will henceforth be operated as Tyco Integrated Security in North America, but will retain the ADT brand outside North America.
The brand change comes as Tyco is splitting into three primary units. There will be the North American residential security unit, which operates and will continue to operate as ADT. The second unit is the fire and security business unit of Tyco, which will be comprised of the newly announced Tyco Integrated Security (TIS), Tyco Security Products (TSP), Tyco Fire Products (TFP), SimplexGrinnell, overseas commercial and residential security integration, and the life safety business (such as the air pack business). The third unit is the "flow control" business which delivers industrial flow products.
The fire and security business unit, which includes the commercial unit that is being renamed as Tyco Integrated Security, is a roughly $10 billion business unit.
Brian McDonald, the COO for the fire and security services and installation unit and interim president for the North American commercial security business, said that while ADT was a great brand to have for marketing of his North American commercial fire and security unit, the Tyco Integrated Security brand has already been tested with existing and potential customers as well as employees and the brand was accepted well. "ADT is a well-known brand but so is Tyco. We have roughly 2,000 sales people in North America. The credibility they have built up [with our customers] is really what is going to carry the new name to success."
Nonetheless, he said, he said losing the ADT name obviously means a transition.
"The name [ADT] has had tremendous recognition. Even more importantly it impacts our employees who have been part of building that brand for many years. There is a lot of respect for it, but I thnk it's of most benefit to the residential business. When you look at commercial business, we're selling business to business, and we have a strong long relationship with our customers, and the Tyco name has a lot of value. We've done market research and it tested well with existing customers, employees and potential customers. We're going to be able to build on it."
Despite the name change for North America, this same commercial unit will still carry that ADT name overseas, both in the residential and commercial security markets, since the ADT business unit in North America will be exclusively residential. "Today [in the commercial business unit] we go to market as ADT in the UK and Ireland, for example, and that won't change."
The next step is to make this transition. "We are already operating with a management standpoint as if we were already separated," said McDonald, who said that much of the work now comes with separating shared staff members into unique duties and then the marketing phase of the new brand name Tyco Integrated Security that will be used in North America."
"The primary mission right now is to complete the separation of these three businesses in North America. We have to establish the new name. We have to look at routine items like uniforms, vans, signage, even stationary. Work on the separating our employees that are sharing the office with residential and commercial."
McDonald said that as part of the three-way split, the three business units will have cooperation agreements in place for the first few years to assure that customers can make the transition – such that if a potential commercial customer calls the residential unit, they'll be connected with the right folks in the commercial unit. "It's all about honoring the intent of the split," he said.
Ultimately, however, McDonald said the split is a great move. "We are tremendously excited about it. All of these are leading brands and have excellent financials."