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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 7, 1998
PERRIGO COMPANY
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(Exact name of registrant as specified in charter)
MICHIGAN 0-19725 38-2799573
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(State of other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
117 Water Street, Allegan, Michigan 49010
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(616) 673-8451
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ITEM 5. Other Events
The Perrigo Company announced a major restructuring plan designed to lower
costs and improve operating efficiencies and financial performance. The
restructuring involves closing of manufacturing facilities in California and
Missouri and the intention to divest the company's personal care business.
The Company estimated that the closures, consolidation of manufacturing
operations and the write-down of assets would result in nonrecurring pre-tax
charges of approximately $100 - 125 million in the fiscal year ending June 30,
1998, and an additional $5 - 10 million for operating loses and restructuring
related expenses over the next 12 months. The restructuring is estimated to
realize an on-going benefit to operating income of approximately $7 - 10
million annually. The Company will finalize a review of the charges prior to
issuing year-end results in August.
The Company has retained J. P. Morgan Securities, Inc. to explore
strategic options to maximize the sale value of the personal care business.
The Company noted that the nonrecurring charges will result in a net loss
for both the fourth quarter and the fiscal year ending June 30, 1998. Fourth
quarter fiscal 1998 earnings, excluding nonrecurring charges, are anticipated
to be below expectations as a result of continued margin pressure due to
declining profitability of personal care products, weak demand in higher margin
OTC pharmaceutical products, increased expenses due to higher research and
development costs, expenses related to new product launches, and greater than
anticipated litigation charges.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PERRIGO COMPANY
(Registrant)
By: /s/ Thomas J. Ross
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Dated: July 7, 1998 Thomas J. Ross
Vice President-Finance
