You don’t have that headwind from the destock year-over-year. So we’re really encouraged as we head into 2024 from the tailwind that we’ll see from out only market recovery and electronics but also the lapping of the absorption headwinds that we’ve taken this year to control investor. And then, the further benefit from deflation as it fully run through our P&L, are kind of the key components that register.
Arun Viswanathan: Great. Thanks. And just real quickly on the share buyback plans. So you’ll be completing the 3.25 very soon. Could you just describe how we should think about the other $2 billion, that you commenced shortly thereafter. Would that be done ratably or how should we think about that? How it flows in? Thanks.
Lori Koch: Yeah. So it will be a similar structure to the first 3.25. I guess we’ll complete that within a month, and then shortly thereafter, we’ll execute a $2 billion ASR. So you’ll get 80% of the shares upfront, and then you’ll get the 20% cleanup in the back, and it probably will take us about six months to complete that full program. It’s usually about a quarter for every $1 billion of shares that you’re taking now.
Arun Viswanathan: Thanks.
Operator: Your next question comes from Mike Sison from Wells Fargo.
Mike Sison: Hey. Good morning. In terms of Semi Technologies and Interconnect Solutions, I think historically after a destocking event, you do see some restocking. But given it’s taking so long for the destocking to end, how do you think that plays out this time around or is there any differences between the regions on that?
Lori Koch: Yeah. I mean, it’s hard to say what everyone is going to do with respect to the restock after coming through such a significant destocking. So we might change their normal pattern just to get every year likewise. So probably a little too early to say what’s going to happen from a restocking perspective. I’ll think you probably announce year and everyone [Technical Difficulty] stabilization that’s happening in the supply chain generally, everybody in that.
Mike Sison: Got it. And then just quick follow-up E&I historically been above 30% for EBITDA margins and sort of get back there? Is it just simply getting all the volume back?
Ed Breen: Yes. It’s really two things. getting the volume back, but remember a point I think I made earlier when Steve was on, the EBITDA margins ex the absorption in the second quarter were already over 30%. So the absorption is what pulling down the charge we took there to expanded to 26.6-ish number. So we know we can — even in a softer volume environment, we’re running it a little north of 30%. And as you said and I said earlier, we run this business 32%, 33% EBITDA margins. And we’ll get price throughput, as the volumes continue to come back.
Mike Sison: Got it. Thank you.
Ed Breen: Thanks.
Operator: Your final question comes from Patrick Cunningham from Citibank.
Patrick Cunningham: Hi. Good morning. Is there any update to your expectations for $20 million in synergy capture from Spectrum? And what should we expect for the cadence there?
Lori Koch: Yeah, no update to that. We still expect $20 million. It probably will take the better part of 12 to 18 months to get $20 million out. I mean, obviously, for us, it is more of a revenue synergy opportunity as we bring the two portfolios together in verge our expertise biopharma with their expertise in medical device comes from a revenue synergy perspective.
Patrick Cunningham: Got it. That’s helpful. And how do you expect the healthcare business to trend throughout the year, both on the Legacy and the Spectrum side? There’s been some commentary pointing to pockets of destocking as companies deplete safety stocks. Have you seen any of that from any of your businesses?
Ed Breen: Yeah. So our Liveo business were — I think Lori mentioned this a little while ago in the biopharma side. We’re seeing some destocking there. And I think I heard, I think, six other companies I heard in the last week would make the results that they were seeing some destocking in biopharma. In my gut is that last a couple of quarters. Just to correct that a little bit. And it was another one of those markets just like semi. I remember I was getting calls from CEOs in the healthcare business, but we need more. And I think just like semi everyone overshot, there’s a little bit of a correction going on there, but I’d say that’s probably the third and fourth quarter a little correction there. As Lori mentioned earlier, the spectrum numbers are kind of right on where we thought they would be.
So they look like they’re keyed up for the year, we thought they were going to happen in the second half of the year here. And I would expect, again, that the growth in our healthcare businesses will be above company average and certainly above GDP.
Patrick Cunningham: Great. Thank you.
Ed Breen: Thank you.
Operator: I now turn the call over to Chris Mecray for concluding remarks.
Chris Mecray: Okay. Thanks, everybody, for joining our call. Just to be a reference, a copy of the transcript will be posted on our website once available. This concludes our call. Thank you.
