NEW YORK (Standard&Poor's CreditWire) May 19, 1999-- Standard&Poor's today affirmed its ratings on Tyco International Ltd. and related entities and Raychem Corp. (see list below) following Tyco's announcement that it intends to acquire Raychem for $2.87 billion in cash and stock, subject to shareholder and regulatory approval. In addition, Tyco will assume about $600 million of debt. The acquisition, which will be accounted for as a purchase, strengthens Tyco's position as a leading electronics supplier to the telecommunications, automotive, and other industries. Raychem has a diverse product line, strong technology and product development skills, and fairly consistent profitability, with operating margins (before depreciation and amortization) in the midteens percentage area. The transaction expands Tyco's product line
