In a brief statement issued this morning, Dutch medical device company Tornier ($TRNX), which debuted on NASDAQ in early 2011, says it plans to consolidate facilities "to drive operational productivity." As a result of the consolidations, the company anticipates a reduction of annual operating expenses by $2.3 million to $2.8 million starting next year.
The statement is a little short on specifics--for example, if there will be an impact on jobs--but the company says it will go into more detail during its first quarter earnings call early next month.
Here's what we do know. Tornier's plans include the relocation of its distribution operations in Stafford, TX, to Minnesota. It will consolidate these operations with its U.S.-based marketing, training, regulatory, clinical, supply chain and corporate functions into a single leased site. The U.S. isn't the only region to be affected, however. Operations at facilities in St. Ismier, France and Dunmanway, Ireland, will also be consolidated into nearby sites, the company says.
Tornier, which specializes in joint replacement, trauma, sports medicine, and biologic products to treat the extremities, says it has been seeing an increasing number of product launches as of late. These consolidations will allow for better communication between levels of the supply chain, as well as greater productivity, according to president and CEO Douglas Kohrs in a statement.
The devicemaker estimates it will incur restructuring charges of $6 million to $7 million, much of which will be recorded this year.
Tornier had full year 2011 sales of
- see the Tornier release