Varian Associates Inc. is reorganizing into three separate companies. The Palo Alto, Calif.-based manufacturer has units in analytical and research instruments, semiconductor equipment and health care systems.
Noting that there is no longer a material synergy among the business units, Chairman J. Tracy O'Rourke explained the reorganization as a response to the company's discounted share price. Varian's stock has been trading below the level of other companies in all three of its core businesses. Investors will receive shares in the new companies commensurate with their holdings. Shareholder approval is expected by March 1999.
Restructuring will continue for up to seven months, during which some of the 7100 employees may be laid off. The analytical instrument business posted sales in 1997 of $527 million, topping the other units.