Health-care product supplier,
said Tuesday that it plans to close two plants located in Holland and Montague, Mich.
The company plans to transfer profitable product lines from these locations to plants in Allegan, Mich., and the Bronx, N.Y., and will discontinue the unprofitable psyllium-based laxatives and effervescent tablets.
The company also expects to incur a pre-tax charge related to the plant closings of about $8 million in the fourth quarter of fiscal 2006 ending July 1 and also anticipates a one-time cost in fiscal 2007 of about $3 million due to the closings.
"All of the 140 employees at the Holland and Montague plants will be offered employment opportunities in the Allegan facilities as the operations are phased out by the end of the year," said Perrigo.
The company's shares were trading at $16.02, up a penny, or 0.1% Tuesday.
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