The closure of the company’s Santa Clara facility is part of an ongoing integration of business acquired from PerkinElmer in May 2017. The Salt Lake City-based company expects operations at the Santa Clara facility to completely stop by the end of December 2020. It expects to finish all activities related to the closure by the end of March 2021.
Varex Imaging said that 110 positions will be eliminated as a result of the facility’s closure, according to an SEC filing.
Restructuring charges are expected to be between $20 million to $24 million with approximately $6 million of accelerated depreciation, $6 to $7 million for impairment of assets, $5 to $7 million for employee and severance related costs and $3 to $ million for the remaining lease obligation. The company said that about $8 to $11 million of the restructuring charges will result in future cash expenditures and expects savings of $12 to $16 million in annual cost savings from the closure.
The Salt Lake City-based company in May reported second-quarter profits of $5.8 million on sales of $195.8 million.