Medical device manufacturer Teleflex ($TFX) offered some detail on a restructuring disclosed in April. It plans to close an Arrow International plant in Asheboro, NC, and move those operations to its location in Mexico--which will result in layoffs for more than 600 people over the next three years.
Disposable catheter manufacturer Arrow is owned by Pennsylvania-based Teleflex. In its first quarter earnings, the company said it would restructure and move manufacturing to lower cost locations. These efforts are expected to save between $28 million and $35 million annually starting in 2015. Teleflex expects to incur charges of $42 to $53 million due to the restructuring: up to $23 million of which will occur in 2014.
Teleflex attributed the need for a restructuring to "continuing cost pressures in the healthcare industry." During the first quarter of 2014, Teleflex had $0.77 in GAAP diluted earnings per share, up 20% from the same quarter a year prior, on net revenues of $438.5 million.
Teleflex acquired Arrow for $2 billion in 2007.
- here's the company's Q1 press release
- and here's the release on Arrow's acquisition