A year ago the Alpharetta, Ga.-based company, which spun out of Kimberly-Clark (NYSE:KMB) as Halyard Health in October 2014, rebranded as Avanos a month after dealing its surgical and infection prevention business to Owens & Minor (NYSE:OMI) for $710 million.
Yesterday the company approved the last phase of the restructuring, involving the optimization of its procurement, manufacturing and supply chain operations. Phase 3 is expected to cost between $11 million and $13 million, plus another $8 million to $12 million through 2021, when the last stage is due to be completed. At that point the annualized savings from Phase 3 are slated to be $19 million to $24 million, Avanos said.
Compared with 2018, the annualized savings from all three phases is expected to be $30 million to $40 million, consisting of $7 million to $10 million in 2019, $12 million to $16 million next year and $11 million to $14 million in 2021, the company said.