Benzinga | Feb 4, 2021 06:19AM EST

Bio-Rad Laboratories Says Initiated Restructuring Plan; Estimates It will Incur $125M-$130M In Total Costs

On February 3, 2021, Bio-Rad Laboratories, Inc. (the "Company") initiated a strategy-driven restructuring plan in furtherance of the Company's ongoing program to improve operating performance. The restructuring plan primarily impacts our operations in Europe and includes the elimination of certain positions, the consolidation of certain functions, and the relocation of certain manufacturing operations from Europe to Asia. The restructuring plan is expected to eliminate a total of approximately 530 positions (approximately 200 positions in manufacturing and 330 positions across commercial, research and development, and general administration), and the subsequent creation of a total of approximately 325 new positions (approximately 100 new positions in manufacturing and 225 new positions across commercial, research and development, and general administration). The Company anticipates the restructuring plan will be implemented in phases that it expects to be substantially completed by the end of 2022.

The Company estimates that as a result of this restructuring plan it will incur between approximately $125,000,000 and $130,000,000 in total cost, which we anticipate will consist of: (i) approximately $86,000,000 cash expenditures in the form of one-time termination benefits to the affected employees, including cash severance payments, healthcare benefits, and related transition assistance; (ii) approximately $19,000,000 in capital expenses associated with the restructuring plan; and (iii) between approximately $20,000,000 and $25,000,000 in one time transition costs, including employee transition costs, supply chain costs and regulatory costs. The Company anticipates that it will record between approximately $80,000,000 to $90,000,000 of the charges related to this restructuring plan in the first quarter of 2021 with the balance recorded by the end of 2022.