Christina Zarrello06.14.07
Wright Medical Group, Inc., a global orthopedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and biologics, announced today that it has completed a review of its worldwide operations and, as a result, is planning to close the Company’s manufacturing, distribution and administrative facility located in Toulon, France.
Wright has entered into discussions regarding the facility’s closure with the local staff representatives of the approximately 130 Toulon-based employees affected. Wright expects that the facility closure will be completed during the next six months, with all Toulon production being transferred to the Company’s existing manufacturing facility in Arlington, Tennessee and the majority of its distribution activities being transferred to the Company’s European headquarters in Amsterdam, The Netherlands.
Gary D. Henley, President and Chief Executive Officer stated, “After careful analysis and consideration, we have reached a clear conclusion with respect to our worldwide capacities. The closing of our Toulon operations, while painful to all of us, is necessary to ensure the long-term competitiveness of the Company. Our decision impacts a significant number of talented and long-standing Wright Medical employees. Throughout this process we will be working to reduce the impact that our decision will have on those employees and on the local community.”
The Company estimates that the pre-tax charges related to the closing of the Toulon facilities will be in the range of approximately $20 million to $25 million. These charges include both cash and non-cash items such as asset impairment charges, severance and benefits costs, external legal and professional fees, and other costs. A portion of these charges is expected to be recorded in each of the second, third and fourth quarters of 2007.
SOURCE: BUSINESS WIRE
Wright has entered into discussions regarding the facility’s closure with the local staff representatives of the approximately 130 Toulon-based employees affected. Wright expects that the facility closure will be completed during the next six months, with all Toulon production being transferred to the Company’s existing manufacturing facility in Arlington, Tennessee and the majority of its distribution activities being transferred to the Company’s European headquarters in Amsterdam, The Netherlands.
Gary D. Henley, President and Chief Executive Officer stated, “After careful analysis and consideration, we have reached a clear conclusion with respect to our worldwide capacities. The closing of our Toulon operations, while painful to all of us, is necessary to ensure the long-term competitiveness of the Company. Our decision impacts a significant number of talented and long-standing Wright Medical employees. Throughout this process we will be working to reduce the impact that our decision will have on those employees and on the local community.”
The Company estimates that the pre-tax charges related to the closing of the Toulon facilities will be in the range of approximately $20 million to $25 million. These charges include both cash and non-cash items such as asset impairment charges, severance and benefits costs, external legal and professional fees, and other costs. A portion of these charges is expected to be recorded in each of the second, third and fourth quarters of 2007.
SOURCE: BUSINESS WIRE