ITEM 2.05 Costs Associated with Exit or Disposal Activities.
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.
Note Regarding Forward-Looking Statements
Certain statements set forth in Item 2.05 above constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, statements concerning the Company's
expectations relating to the restructuring plan, including the anticipated
workforce reduction, timing of completion of the restructuring plan, and timing
and amounts of the charge to be recorded and cash expenditures to be made in
connection with the restructuring plan. The Company cautions you that
forward-looking statements are inherently uncertain. Although the Company
believes that such statements are based on reasonable assumptions within the
bounds of its knowledge of its business and operations, the forward-looking
statements are necessarily subject to a high degree of uncertainty and risk.
Actual performance and results may differ materially from those expressed or
implied in the forward-looking statements due to various risks and
uncertainties. These risks and uncertainties include: the Company's ability to
complete the restructuring plan within the anticipated timeline; the impact of
the workforce reduction on the Company's business; unanticipated charges not
currently contemplated that may occur as a result of the restructuring plan; and
those risks and uncertainties described in the Company's Annual Report on Form
10-K for the year ended December 31, 2019, and in subsequent filings made by the
Company with the U.S. Securities and Exchange Commission ("SEC"), which are
available on the SEC's website at www.sec.gov. Existing and prospective
investors are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Except as required by law,
the Company disclaims any intention or responsibility for updating or revising
any forward-looking statements contained in Item 2.05 above.
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses
BIO-RAD LABORATORIES, INC. 
