Perrigo Sells Montague Plant

October 30, 2006
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ALLEGAN — Perrigo Co. has agreed to sell its Montague manufacturing plant to Connecticut-based Tower Laboratories for an undisclosed amount. The deal is expected to close by the end of the year.

Perrigo announced in late June that it would phase out operations and close both its Montague and Holland production facilities by year’s end. Some of the products manufactured at the two facilities are to be discontinued, while more profitable product lines will be transferred to Perrigo plants in Allegan and the Bronx, N.Y., according to the company.

The Montague and Holland plants each employ about 70 people, all of whom have been offered positions at the company’s headquarters in Allegan, said Perrigo’s Arthur Shannon, vice president of investor relations. He said that the jobs in Allegan are similar in nature and comparable in compensation to those being eliminated in Holland and Montague. He said some employees have already relocated to headquarters.

Shannon said Perrigo still plans on closing the Holland facility, too, whether or not someone offers to purchase it between now and the end of the year.

As to why the plants were scheduled for closure, Perrigo indicated that since acquiring Agis Industries in March, it 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.”    

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