On the eve of its earnings report (covered here by Stephen Simpson), global manufacturing and service conglomerate Tyco (NYSE:TYC) also announced that it is selling one of its many divisions. Fast-response circuit board maker TTM Technologies (NASDAQ:TTMI) will buy Tyco's Printed Circuit Group (TPCG) for $226 million in cash, with expected completion of the transaction sometime this fall.

Tyco is trying to streamline its operations and refocus on its core strengths, and electronics manufacturing isn't really what the company does best. The gains from this sale will be redeployed elsewhere, or simply used to strengthen the balance sheet. It is, of course, a mere drop in the ocean next to Tyco's $61.7 billion of total assets, including $2.1 billion of cash on hand.

For TTM, it's a much bigger deal. With a market cap south of $500 million and only $57 million of cash available, that company will have to go into debt to make this payment. It's OK, though: TTM currently carries no long-term debt at all. UBS AG (NYSE:UBS) advised TTM on the deal and will provide all of the necessary financing.

Adding on TPCG more than doubles TTM's headcount and brings in significant market share. TPCG is focused on the military and aerospace markets, operates nine factories worldwide, and brought in $383 million in revenues last year. Put that number next to TTM's 2005 revenues of $240 million, and you're starting to see the value of this acquisition.

It's really more of a merger of equals, and TTM's strong management team should be able to take the combined entity to new heights. It looks like a good use of the company's cash pile, and it shouldn't be all that hard to pay off that debt in a timely manner, considering the opportunities that lie before the new beast.

Further Foolishness:

TTM Technologies is a Stock Advisor recommendation, and Tyco is an Inside Value pick. Try a 30-day free trial to one of our services.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. You can check out Anders' holdingsif you like. Foolishdisclosureis debt-free and opportunistic.