West Pharmaceutical Services, a CMO, said it plans to close or consolidate some of its manufacturing and other operations over the next one to two years as part of a corporate streamlining effort.
The restructuring initiative was announced when the company reported its fourth-quarter and full-year 2017 earnings last month.
Executives told analysts that as the company moves both products and customers during the process, West Pharma will be able to exit some facilities or discontinue some activities, adding that some locations will be closed.
The company did not elaborate on what facilities might be affected, but said it expects to spend between $8 million and $13 million for restructuring costs and between $9 million and $14 million in capital expenditures.
“We're pooling the resources and the technologies and capabilities into more discreet locations,” Eric Green, West Pharma’s chief executive, told analysts. “This gives us an opportunity to run more efficiently. “
The company reported fourth-quarter net sales of $415.6 million, up 8.7% from the year before, and full-year net sales were $1.5 billion, up 6% from the prior year.