Varian Plans to Split Into 3 Companies

High-tech equipment maker Varian Associates Inc. said it will spin off its core businesses to counter the effects of a weak semiconductor sector. The plan, approved by its board last week, would split Palo Alto-based Varian into three businesses focused on health-care systems, semiconductor equipment and scientific instruments. After the split, Varian would form three separately traded public companies of similar size, the company said. The health-care business would focus on radiation oncology equipment and X-ray tubes. The instruments business would make analytical and research devices for industrial and scientific applications. The semiconductor equipment operation, the most volatile of the three units, would produce ion-implantation systems.