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Varex Imaging completes spinoff from Varian Medical Systems

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Varex Imaging completes spinoff from Varian Medical Systems

Varex Imaging Corp. has completed its spinoff from Varian Medical Systems Inc.

On completion, shareholders of Varian received 0.4 of Varex stock for every share of Varian stock they held as of Jan. 20.

In addition, Varex paid Varian $200 million in cash. Varex funded this payment and related expenses from its $300 million revolving credit facility. The remaining undrawn funds remain available to fund working capital needs and other general corporate purposes.

The company's common stock has started trading in a "regular way" on the Nasdaq Global Select Market as "VREX."

Varex will be led by President, CEO and board member Sunny Sanyal, with CFO Clarence Verhoef and General Counsel and Corporate Secretary Kim Honeysett.

Previously, Sanyal was president of the Varian Imaging components business, Verhoef was Varian corporate controller, and Honeysett was vice president and assistant general counsel and assistant corporate secretary for Varian.

Varex's board includes Board Chairman Ruediger Naumann-Etienne, Bio-Rad Laboratories Inc. CFO Christine Tsingos, Varian President and CEO Dow Wilson, Erich Reinhardt and Jay Kunkel.

Naumann-Etienne has been the owner and managing director of Intertec Group, an investment company specializing in the medical device field, since 1989. Reinhardt was previously president and CEO of Siemens Healthcare, while Kunkel is senior vice president and president of Asia-Pacific operations of Leer Corp.

Varex expects revenues for fiscal year 2017 to grow by 3% to 4% over about $620 million recorded for fiscal year 2016. It anticipates GAAP net earnings per share for the second through the fourth quarters of fiscal year 2017 will be in the range of $1.20 per share to $1.30 per share.

J.P. Morgan Securities LLC and Wachtell Lipton Rosen & Katz acted as the respective financial and legal advisers in connection with the separation.