Agilent to Become Stand-Alone Life Sciences, Chemical Analysis and Diagnostics Company
The move simplifies investor valuation, as Agilent participates in two very different markets, and enables greater management focus. The life science, diagnostic and applied (LDA) markets are less cyclical, faster growing and have different growth drivers than the communications, aerospace and semiconductor end-markets that the Electronic Measurement division serves. The new Agilent expects to pay an annual dividend totaling $130 million. In fiscal 2012, the new Agilent had a gross margin of 57%. (For more, see pages 1 and 12.)
Santa Clara, CA 9/19/13; Santa Clara, 9/19/13—Agilent Technologies has announced plans to spin off its Electronic Measurement division as a separately traded public company. The remaining business, consisting of the company’s Life Sciences, Chemical Analysis and Diagnostics segments, will retain the Agilent name and continue under President and CEO William Sullivan. Those businesses are estimated to have fiscal 2013 revenues of $3.9 billion. “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,” stated Mr. Sullivan. Lars Holmkvist has been named senior vice president and president of the newly combined Life Science Sciences and Diagnostics Group. Nick Roelofs, formerly president of the Life Sciences Group, has left the company, while Mike McMullen will remain senior vice president and president of the Chemical Analysis Group. Agilent shareholders will receive a pro rata distribution of shares in the new Electronic Measurement company via a tax-free spin-off. The transaction is expected to be completed by the end of 2014.
