Integration of Huntleigh proceeding as planned
The previously announced plan for a rapid and effective integration of Huntleigh into Getinge’s Extended Care business area is proceeding as planned. During the third quarter, a decision was taken to discontinue Huntleigh’s production unit for hospital beds in Wednesbury, United Kingdom. Manufacturing in this production unit, which has approximately 360 employees, will be transferred to Extended Care’s production unit in Poznan, Poland.
During the period, it was also decided to discontinue production at the unit in Eatontown, USA. Manufacturing in this production unit will also be transferred to Poznan, Poland, where similar manufacturing operations are already being conducted. The closure of the operation in the United States will affect about 125 employees. In addition to the above activities, decisions were made during the quarter to coordinate Extended Care’s and Huntleigh’s sales companies in France, Belgium, Canada and the Netherlands.
The cost of the restructuring and integration measures that were decided and implemented during the period will be charged against earnings for the third quarter of 2007 in an amount of about SEK 110 million. For the current year, it continues to be estimated that the integration costs will amount to SEK 250-260 million. As before, the costs for finalizing the planned integration are estimated to total approximately SEK 400 million and, in all essential respects, the integration will be completed during 2008.
The savings that are expected to result from the implemented and planned measures will exceed SEK 300 million on an annual basis and become fully visible during 2009/2010. For the current year, it is estimated that the savings will amount to SEK 50-60 million.
Getinge 9th October 2007
Getinge Internet address http://www.getingegroup.com