After four years of subpar performance, Agilent Technologies is shutting down its nuclear MR (NMR) business.
The announcement is part of Agilent's strategy to reverse shortfalls in its research products division. In early 2013, Agilent announced its departure from the OEM and specialty magnet business, as well as its MRI business, to focus resources on the core NMR portfolio.
Despite the changes, Agilent said the NMR business has continued to fall short of growth and profitability objectives. The company entered the NMR market in 2010 when it acquired the business from Varian.
Agilent said it will continue to meet commitments for customer orders now in progress, honor ongoing support contracts, and provide service on all installed NMR systems.
The closure will mean the elimination of some 300 jobs, mostly within the next 12 months. The majority of the affected positions are located in Yarnton, U.K., and Santa Clara, CA.
Mike McMullen, Agilent's president, chief operating officer, and CEO-elect, said the closure was "necessary to drive improved profitability," adding that Agilent will invest in "higher-value life sciences, applied markets, and diagnostics solutions that will continue to drive growth across the company."
To cover the cost of closing the business, Agilent plans to take a restructuring charge of approximately $72 million in the fourth quarter. The company also expects a $20 million to $30 million decline in revenues in its 2015 fiscal year due to the business closure, but also a positive impact of about $10 million in operating profit.
