Agilent Technologies Inc. has unveiled a restructuring plan in which it will spin off its Electronic Measurement business (EM) in order to focus on life sciences, diagnostics and applied markets (LDA). EM has a value of approximately $2.9 billion while LDA is valued at approximately $3.9 billion. As part of the move, Agilent has combined its Life Sciences Group with its Diagnostics and Genomics business.
Agilent president and chief executive officer William (Bill) Sullivan remarked, “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. 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. We are focused on making this transition seamless for our customers.”
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. Neil Dougherty, who has been Agilent’s vice president and treasurer, is vice president of Agilent and CFO-designate of the new EM company. The spinoff, is expected to close by the end of the 2014 calendar year and is planned to occur through a tax-free pro rata spinoff of the EM company to Agilent shareholders.
After the EM separation, Agilent will be comprised of two businesses: the Chemical Analysis Group and the new Life Sciences and Diagnostics Group. Mike McMullen, current group president and Agilent senior vice president, will lead the CAG, while Lars Holmkvist has been named president of LSDG and senior vice president of Agilent. Mr. Holmkvist was previously president of the Diagnostics and Genomics Group and senior vice president of Agilent. Nick Roelofs, who has been president of the Life Sciences Group, will leave Agilent to pursue other business opportunities.
“We are creating a new Agilent with a simplified structure that can move quickly to develop and deliver industry-leading total workflow solutions for our customers,” said Mr. Sullivan. “Lars is the ideal leader for the new group with his years of experience, depth of market knowledge and superb leadership style.”
Mr. Holmkvist joined Agilent in June 2012, when Agilent acquired Dako. He had been president and chief executive officer of Dako since 2009. Before joining Dako, Holmkvist served as president, Europe, for Applied Biosystems, where he was later promoted to president, International, with responsibilities for all commercial operations outside the U.S.
In addition, the company has created a new Agilent Order Fulfillment organization, which will be led by Henrik Ancher-Jensen, who has been named president of that group and senior vice president of Agilent. He replaces Gooi Soon Chai, who is joining the EM spinoff company. Mr. Ancher-Jensen was previously vice president, Global Product Supply, for Agilent’s Diagnostics and Genomics Group, and corporate vice president, Global Operations, for Dako.
“Henrik understands the priority of customer satisfaction while at the same time contributing to margin expansion goals. His experience and drive for excellence makes him a great match for this important position,” said Mr. Sullivan.
Mr. Ancher-Jensen came to Agilent in June 2012 with the acquisition of Dako. He joined Dako in 2006 as vice president, Supply Chain, and chief information officer, and was subsequently promoted to corporate vice president, Global Operations. Prior to joining Dako, he spent more than 15 years in senior management roles and management consulting with Chr. Hansen, Deloitte Consulting and NVE.