EARTH CITY, Mo. (KMOX) – Drug maker Actavis has announced to its employees that it plans to close its Earth City facilities, resulting in nearly 200 layoffs, the St. Louis Business Journal reports.
The announcement comes days after Actavis closed on its acquisition of Forest Laboratories Inc. for $28 billion on July 1.
The closing of the facility will be effective in June 2015, and approximately 200 employees involved in distribution/logistics, packaging, resource planning, quality purchasing, information technology, research and development, human resources, finance, and sales and marketing will be affected, according to an internal memo from the Actavis management team.
Actavis officials issued a statement to the Business Journal saying 190 employees in St. Louis would be impacted by the facility closures.
Employees in the company’s St. Louis regional sales organization will not be impacted.
Warehousing and distribution activities now based in Forest Laboratories’ Earth City locations will be relocated to an Actavis distribution center in Gurnee, Ill. The relocation of these functions will “begin immediately” and should be completed by the end of 2014, the Business Journal reports.
“When we announced the proposed acquisition of Forest by Actavis in February, we recognized the challenge of combining two businesses, which have overlapping functions and capabilities,” the Actavis memo stated. “We want all employees to understand that this decision does not reflect on the commitment of the legacy Forest teams in Earth City, Missouri.”
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