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© joingate-dreamstime.com Business | September 19, 2013

Agilent to split into two

Agilent plans to separate into two publicly traded companies: one in life sciences, diagnostics and applied markets (LDA) which will keep the Agilent name, the other will be comprised of Agilent’s 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.

“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,” he said. “We are focused on making this transition seamless for our customers.”

Agilent 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 unique 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

Bill Sullivan is president and CEO of Agilent, and Didier Hirsch continues as CFO.

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