Agilent Technologies has announced plans to separate into two publicly traded companies. One concentrating on life sciences, diagnostics and applied markets (LDA) will retain the Agilent name, while the other 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 (Bill) Sullivan, Agilent president and CEO.
The company believes that the separation will result in material benefits to the standalone companies:
• Greater management focus on the distinct businesses of LDA and EM
• Ability for the LDA company to devote resources to the higher-growth LDA business, while reducing exposure to the more cyclical EM industry
• Ability for the EM company to devote resources to its own growth that were previously used to capitalize LDA
• Two independent and investment profiles
• Both companies will be well capitalized, having strong balance sheets and investment-grade profiles with target debt-to-EBITDA ratios below 2.0x
The new EM company will be an electronic measurement company, with a leading position in major markets including communications; aerospace and defense; and industrial, computers and semiconductors.
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.