AVANOS MEDICAL, INC. (AVNS): restructuring charge — Avanos Medical estimates $20M-$25M cash costs for transformation; expects $45M-$55M gross savings by 2025

AVANOS MEDICAL, INC.

Cash expenses of $20M-$25M for transformation: $9M-$12M consulting/retention, $8M-$11M manufacturing/supply chain.
Employee severance and benefits costs estimated at $6M-$8M.
Anticipated savings of ~$10M in 2023; gross savings of $45M-$55M by 2025, mostly in 2024.
Plan includes combining Chronic Care and Pain franchises, exiting low-margin products, and cost management.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

AVANOS MEDICAL, INC. announced a restructuring with charges of between $20.0 million and $25.0 million affecting Chronic Care and Pain franchises (between $6.0 million and $8.0 million of employee severance and benefits costs).

Type: restructuring
Charge: between $20.0 million and $25.0 million
Affected area: Chronic Care and Pain franchises
Headcount: between $6.0 million and $8.0 million of employee severance and benefits costs

Exact text from the filing

The Company now estimates it will incur between $20.0 million and $25.0 million of cash expenses in connection with the Transformation Process, consisting of between $9.0 million and $12.0 million of program management consulting and employee retention expenses; between $8.0 million and $11.0 million of expenses associated with manufacturing and supply chain improvements and portfolio rationalization; and the remainder for expenses associated with organizational design and alignment and other related activities.

View on SEC.gov

Browse all restructurings & charges →

AVANOS MEDICAL, INC. filing history →

Source: SEC EDGAR

accession 0001606498-23-000018

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.