- change ups
Perrigo Shuts Holland Montague Plants
ALLEGAN — When the lake-effect snow starts flying and winds start whipping across the fruit fields of western
Perrigo announced last week that it will close those two production facilities by the end of the year. Since acquiring Israeli competitor Agis Industries last March, Perrigo "has pursued opportunities to integrate both businesses and to make them as efficient as possible, while at the same time evaluating ways to improve underperforming assets," according to a company statement. Some of the products produced in the
Each of the plants scheduled to close employs about 70 individuals. All of the employees will be offered positions at Perrigo's Allegan headquarters.
"We are confident that a good number of our employees from these locations will take the transfers and remain with Perrigo," John T. Hendrickson, general manager of Perrigo's consumer health care division, said in a written statement. "This highly productive, skilled team of employees has performed very well in
Closing the plants will result in approximately $11 million in one-time charges. Most of that financial sting will be felt in the fourth quarter of the company's 2006 fiscal year, which ended July 1. The remaining $3 million in restructuring charges will be absorbed in the first quarter of fiscal 2007.
Perrigo owns both of the soon-to-close facilities. There are not any particular redevelopment plans in the works, and the company simply plans to sell the facilities. Schenk did not know how much those sales might yield the company.
The announcement of the plant closings did not have a noticeable impact on the company's share price, which hovered around $16 per share the day of the news.