BUSINESS COMBINATIONS

3 Months Ended

Dec. 30, 2016

Business Combinations [Abstract]

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS

Acquisition of PerkinElmer’s Medical Imaging Business

On December 21, 2016, Varian and PerkinElmer, Inc. (“PerkinElmer”) entered into a Master Purchase and Sale Agreement (the “MPSA”), pursuant to which Varian agreed to purchase certain subsidiaries of PerkinElmer and to purchase certain assets and assume certain liabilities and obligations of PerkinElmer and certain of its subsidiaries, in each case to the extent primarily related to PerkinElmer’s medical imaging business, in a cash-free and debt-free transaction with a purchase price of approximately $276.0 million. The purchase price is payable at the closing of the transaction and is subject to adjustment for changes in the working capital balance of the business. In connection with the separation and distribution, Varian assigned the MPSA, along with all related agreements, to Varex, and Varex assumed all of the rights and obligations of Varian thereunder. On January 28, 2017, Varex received a commitment letter from a group of underwriting banks to obtain third-party financing to finance all or a substantial portion of the purchase price to consummate the acquisition of PerkinElmer’s medical imaging business. See Note 11, “Borrowings” for further detail on the Company’s indebtedness. The completion of the acquisition is subject to a number of conditions; however, it is not subject to a financing contingency. We expect the acquisition to be completed subsequent to our second fiscal quarter of 2017.