Endo to restructure manufacturing network
Endo International announced that after completing a comprehensive review of its manufacturing network, the company will be ceasing operations and closing its manufacturing and distribution facilities in Huntsville, Alabama. The closure of the facilities is expected to take place over the next 12 to 18 months. The Huntsville location has been impacted by declining volumes of commoditized products and these restructuring actions are intended to better match manufacturing capacity to projected future demand.
"Endo's key priorities include building our product portfolio and technological capabilities for the future. Today's announced action enables a redeployment of investment from commoditized products to more differentiated capabilities and products that represent our core areas of future growth," said Paul Campanelli, president and CEO of Endo.
"I would like to recognize the efforts and hard work of those who have been impacted by this difficult decision and thank them for their valuable contributions to our company," Campanelli added.
These restructuring actions are expected to reduce Endo's workforce by approximately 875 positions (including approximately 35 open positions) and result in pre-tax restructuring charges of approximately $325 million, including approximately $60 million of cash charges. The remaining estimated non-cash charges consist primarily of accelerated depreciation of approximately $165 million and intangible asset and property, plant and equipment impairment charges of approximately $90 million. Endo expects to realize approximately $55 million to $65 million in annual net run rate pre-tax cost savings by the fourth quarter of 2018.