Agfa to split into 3 different businesses

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Agfa-Gevaert NV this week announced it is splitting the company into three independent businesses: HealthCare, Graphics and Materials. The move is aimed at creating flexibility within in each division to push growth, and also to reduce costs, the company said. Agfa estimates it will achieve savings of approximately 250 million Euro (approximately $314 million USD) by 2008 because of the changes. Agfa-Gevaert will operate as the holding company for the three business units, the company said.
In recent years, Agfa-Gevaert has transformed from an analog imaging product company to one focused on digital imaging and IT systems and services, as well as involvement in high growth areas such as health IT. Since the beginning of 2006, the business groups Graphics and HealthCare are already operationally independent. Agfa’s Materials business will be focused on film manufacturing activities. This group will manufacture film and related products on an exclusive basis for Graphics and HealthCare as well as for third parties, Agfa said.
Over the coming weeks a specific strategy will be defined for each business, and the plans will be revealed in August, the company said. Generally, Agfa HealthCare will continue to invest in the international roll-out of its hospital IT platform. This will be driven by the company’s emphasis on hospital IT, including enterprise-wide healthcare information systems, and a desire to strengthen its position in conventional and digital medical imaging. HealthCare plans to achieve at least 1.7 billion Euro (approximately $2.1 billion USD) in revenues by 2008, Agfa said.