Agilent Exits NMR Business
An Agilent spokesperson told IBO, “Going forward, as a smaller, more focused company, Agilent wants to ensure that we place our investments on higher-value growth drivers for the company.” The change increases Bruker’s position as the dominant NMR supplier and may benefit JEOL, the other major NMR provider. Agilent had previously aimed to make the NMR business profitable by the end of this fiscal year. In an effort to achieve this, in 2013, the company exited the OEM and specialty magnet business (see IBO 3/15/13) and the MRI business. Agilent’s Research Products Division currently includes the NMR and XRD businesses, according to Agilent. Given the announcement, the prospects for the XRD business, also acquired from Varian, are not promising.
Santa Clara, CA 10/14/14—Agilent Technologies has announced that it is closing its NMR business because the business has not met growth or profitability objectives. Agilent entered the NMR market in 2010 with the acquisition of Varian (see IBO 7/31/09). “Today’s announcement represents a difficult decision necessary to drive improved profitability,” stated Agilent President, COO and CEO-elect Mike McMullen. The company stated that the decision is part of its strategy to address the business shortfalls of its Research Products Division. Agilent expects a $20–$30 million decline in revenues in fiscal 2015 as a result of the exit and the elimination of about 300 jobs. In the fourth quarter, Agilent expects revenues to be negatively affected by $13 million due to currency and by $12 million due to lower NMR-related revenues. The company will take a $72 million restructuring charge in the fourth quarter related to the business. A positive impact of about $10 million in operating profit is expected in fiscal 2015. Agilent will stop taking new NMR orders immediately, but will continue to support and service existing systems, and meet orders in progress.
