Blog Coverage Varian Provided Update on Separation of Imaging Component Business

Upcoming AWS Coverage on Stryker Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 11, 2017 / Active Wall St. blog coverage looks at the headline from Varian Medical Systems, Inc. (NYSE: VAR) as the Company announced on January 10, 2017, that its Board of Directors approved the previously announced separation of its Imaging Components business. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Varian Medical Systems’ competitors within the Medical Appliances & Equipment space, Stryker Corp. (NYSE: SYK), is estimated to report earnings on January 24, 2017. AWS will be initiating a research report on Stryker following the release of its next earnings results.

Today, AWS is promoting its blog coverage on VAR; touching on SYK. Get all of our free blog coverage and more by clicking on the links below:

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Separation Details

Varian announced that the separation will be executed via a tax-free distribution to the Company’s stockholders of common stock in Varex Imaging Corporation, a new stand-alone public company that will hold Varian’s Imaging Components business. Varian’s stockholders would receive 0.4 share of Varex’s common stock for every one share of Varian common stock held as of January 20, 2017. No fractional shares of Varex will be issued. The distribution is expected to be completed on January 28, 2017, subject to the satisfaction or waiver of the conditions to the completion of the distribution.

Trading Details

Varian announced that beginning on or about January 20, 2017, and continuing up to the distribution date, the Company expects “when issued” trading will begin for Varex’s shares on the NASDAQ Global Select Market under the ticker symbol “VREXV”. Varex’s shares are expected to begin “regular way” trading on January 30, 2017 on NASDAQ under the ticker symbol “VREX”. Varian will continue to trade on the New York Stock Exchange under its ticker symbol “VAR”.

Varian also announced that beginning on or about January 20, 2017 and continuing up to the distribution date, Varian’s common stock will be traded in two markets. Varian’s shares that trade in the “regular way” market under the ticker symbol “VAR” will trade with an entitlement to shares of Varex’s common stock to be distributed pursuant to the distribution. The Company stated that the shares that trade in the “ex-distribution” market under the ticker symbol “VAR WI” will trade without an entitlement to shares of Varex’s common stock.

Varian Medical Systems

Upon completion of the separation, Varian will continue to operate its businesses in radiation oncology and proton therapy. These businesses provide hospitals, clinics and healthcare systems around the world with equipment, software and services for radiotherapy, radiosurgery, brachytherapy and proton therapy. Varian will have approximately $2.5 billion in annual revenues and about 6,400 employees around the globe.

Varex Imaging

Post-completion of the separation, Varex Imaging will be a high-volume manufacturer of X-ray tubes, flat panel detectors and high-voltage connectors as well as a supplier of imaging software and specialized accelerators for high-energy x-ray imaging. The newly formed Company is expected to have annual revenues in excess of $600 million and approximately 1,400 employees around the world. Varex’s management will include Sunny Sanyal, current president of Varian’s Imaging Components business, as the Chief Executive Officer, and Clarence Verhoef, current Varian Corporate Controller, as Chief Financial Officer.

Addition of Perkin Elmer to the Business

On December 22, 2016, Varian announced an agreement to acquire the Medical Imaging business of PerkinElmer, Inc. (PKI) as an addition to the Varian Imaging Components business.

The acquisition is expected to close after the planned separation of Varex from Varian and following receipt of required regulatory approvals. Varex will pay $276 million to acquire PerkinElmer’s Medical Imaging business, which is a supplier of digital flat panel X-ray detectors that serve as components for industrial, medical, dental and veterinary X-ray imaging systems. This business, which has about 280 employees, is headquartered in Santa Clara, California with operations in Germany, the Netherlands and the UK. The acquisition, which is contingent on the satisfaction of customary closing conditions, including obtaining third party and regulatory consents, is expected to be immediately accretive to Varex following the closing.

Stock Performance

At the close of trading session on January 10, 2017, Varian Medical Systems’ share price finished yesterday’s trading session at $89.99, slightly up 0.47%. A total volume of 1.18 million shares exchanged hands, which was higher than the 3 months average volume of 891.63 thousand shares. The stock has advanced 4.32% and 18.22% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 21.44 and currently has a market cap of $8.37 billion.

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