Scientific equipment manufacturer Varian Associates Inc is to split into three businesses in an effort to beat the semiconductor slump. The firm’s health care systems, semiconductor equipment and instruments divisions are to be separated, pending stockholder approval. Varian has around 7,100 employees. Health care equipment contributed $472m to its revenues in 1997, instruments (including vacuum pumps and leak detection equipment) $527m, and semiconductor ion implantation systems $424m. The Palo Alto, California-based company blames the weakness in its stock price – currently 50% below its historical high – to the semiconductor downturn. The company said most of its employees would migrate to new positions in one of the three independent companies.
