Agilent splits itself in two
- Published: Sep 24, 2013
- Author: Jon Evans
- Suppliers: Agilent Technologies
- Channels: HPLC / Detectors / Sample Preparation / Gas Chromatography / Laboratory Informatics / Electrophoresis / Ion Chromatography / Proteomics & Genomics / Proteomics / Chemometrics & Informatics / Infrared Spectroscopy / UV/Vis Spectroscopy / X-ray Spectrometry / Base Peak / Raman / NMR Knowledge Base / Atomic / MRI Spectroscopy
Agilent Technologies has announced plans to break itself up into two separate companies. One company, which will retain the Agilent name, will comprise its life sciences, diagnostics and applied markets (LDA) business, while the other as-yet-to-be-named company will comprise its electronic measurement (EM) business.
According to Agilent, this move will allow greater management focus on the distinct businesses of LDA and EM, allowing the new Agilent to devote all its resources to the higher-growth LDA business while reducing its exposure to the more cyclical EM sector. '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 Bill Sullivan, president and CEO of Agilent, who will continue this role in the new Agilent.
Agilent's LDA business is slightly larger than its EM business, with projected revenue of $3.9 billion in 2013 compared to projected revenue of $2.9 billion for the EM business. The LDA business currently comprises three major segments: life sciences, which accounts for 42% of LDA revenues; chemical analysis, which accounts for 41% of revenues; and diagnostics & genomics, which accounts for the remaining 17% of revenues. Agilent sells its chromatography and spectrometry products through both its life sciences segment, where they are used for pharmaceutical and biotechnology research, and its chemical analysis segment, where they are used for food, environmental, forensic and energy analyses.
Under the new Agilent, the life sciences and diagnostics & genomics segments will be combined into a single business unit called the Life Sciences and Diagnostics Group, which will be led by Lars Holmkvist, who is currently president of the diagnostics & genomics segment. The Chemical Analysis Group will continue to be led by Mike McMullen.
In order to split into two separate companies, Agilent plants to distribute shares in the new EM company to existing Agilent shareholders on a pro rata basis and envisages that the process will be completed by the end of 2014.