By DE Editors
Agilent Technologies announced plans to separate into two publicly traded companies: one in life sciences, diagnostics and applied markets (LDA) that will retain the Agilent name, and the other that will be comprised of Agilent’s current portfolio of electronic measurement (EM) products. The separation is expected to occur through a tax-free pro rata spinoff of the EM company to Agilent shareholders.
“Agilent has evolved into two distinct investment and business opportunities, and we are creating two separate and strategically focused enterprises to allow each to maximize its growth and success,” said William Sullivan, Agilent president and CEO. “Agilent’s history is one of reinvention, starting with our own separation from HP and including four major spinoffs since 2005. We are once again making a bold move, as we have done many times in the past, to ensure a future of sustainable growth for both the LDA and EM companies.”
Management believes the separation will allow the LDA company to devote resources to the higher-growth LDA business, while reducing exposure to the more cyclical EM industry.
The new Agilent will focus on life sciences, diagnostics and applied markets, and according to the company will have an attractive recurring revenue base, balanced geographic revenue profile, growth opportunities in emerging markets, molecular diagnostics and clinical markets, and significant margin-expansion opportunities. FY13 estimated revenues are $3.9 billion. It is expected that the new Agilent will continue to pay a dividend at least at the present yield. Bill Sullivan is president and CEO of Agilent, and Didier Hirsch continues as CFO.
The new EM company will have FY13 estimated revenues of $2.9 billion. Ron Nersesian, who has been Agilent’s president and chief operating officer, is executive vice president of Agilent and president and CEO-designate of the new EM company, effective immediately. Neil Dougherty, who has been Agilent’s vice president and treasurer, is vice president of Agilent and CFO-designate of the new EM company.
The Agilent board of directors granted initial approval to pursue the separation plan at its meeting on Sept. 18.
For more information, visit Agilent Technologies.
Sources: Press materials received from the company and additional information gleaned from the company’s website.