10 March 2016
REORGANISATION PLAN FOR THE CARDIAC RHYTHM MANAGEMENT BUSINESS UNIT
LivaNova PLC (the “Company”) announces a reorganisation plan for its Cardiac Rhythm Management Business Unit intended to strengthen its operational effectiveness and efficiency in response to changes in the global marketplace. The Company's Cardiac Surgery and Neuromodulation Business Units are unaffected by the reorganisation plan, which forms part of the wider integration program of Cyberonics, Inc. and Sorin Group organisations.
The Company estimates that, net of new positions created, the reorganisation plan will result in a reduction of around 140 in the workforce, primarily based at the Company's facility in Clamart, France. The plan also contemplates the closure of the Company's research and development facility in Meylan, France, and the consolidation of the Business Unit's research and development capabilities into the Clamart facility. In addition, the research and development team of the Company's New Ventures organisation will be combined with those of the Cardiac Rhythm Management Business Unit. These actions are part of the Company's ongoing optimisation efforts and result from an analysis of the Company's manufacturing and research and development operations worldwide.
The Company has commenced consultations with employee representatives regarding the plan. Although terms are not likely to be finalised until the second quarter of 2016, the Company believes that the reduction in force should be accomplished primarily through voluntary separation packages. The Company is also engaged in efforts to help those affected secure alternative employment.
The Company estimates that these actions will result in total pre-tax charges of approximately US $16 million to US $21 million in 2016, relating to non-recurring cash employee-related costs, including costs for severance and other employee-related assistance and other exit costs associated with the plan. The impact of the reorganisation plan has already been included in financial performance disclosures provided in the Company's press release furnished pursuant to a Current Report on Form 8-K dated 24 February 2016 filed with the U.S. Securities and Exchange Commission (the “SEC”). The Form 8-K can be found on the SEC’s website at www.sec.gov.
LivaNova PLC, headquartered in London, UK, is a global medical technology company formed by the merger of Sorin S.p.A, a leader in the treatment of cardiovascular diseases, and Cyberonics Inc., a medical device company with core expertise in neuromodulation. LivaNova transforms medical innovation into meaningful solutions for the benefit of patients, healthcare professionals, and healthcare systems. The company employs approximately 4,500 employees worldwide. With a presence in more than 100 countries, LivaNova operates as three business units: Cardiac Rhythm Management, Cardiac Surgery, and Neuromodulation, with operating headquarters in Clamart (France), Mirandola (Italy) and Houston (U.S.), respectively.
LivaNova is listed on NASDAQ and listed on the Official List of the UK’s Financial Conduct Authority and traded on London Stock Exchange (LSE) under the ticker symbol “LIVN”.
For more information, please visit www.livanova.com, or contact:
Investor Relations and Media:
Vice President, Investor Relations & Corporate Communications
Phone: +1 (281) 228-7441
Fax: +1 (281) 853-2537
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