* Expects to cut 180 positions
* To take charges of about $79 million
* To shift Illinois surgical kit manufacturing to Mexico,
By Vidya L Nathan
Jan 30 Drug wholesaler Cardinal Health Inc
said it would sell its procedure kits manufacturing
facility in Waukegan, Illinois and its sterilization processes
operations in El Paso, Texas as part of a restructuring of its
Cardinal Health will move surgical kit production work from
Illinois to plants in Juarez, Mexico and Fort Mill, South
Carolina. The restructuring will also include a reorganization
of the company's sales operation and marketing teams.
The company said it would cut 180 positions as part of the
restructuring and take a related charge of about $79 million.
The company declined to comment on any impact the restructuring
might have on 2013.
The company is scheduled to report second-quarter earnings
"As we analyzed that (Medical Segment) business, we felt
that it would be best to shift the (sterilization) services to a
third party who would retain our team and its assets, and
provide us with contract sterilization services," Cardinal
Health spokeswoman Debbie Mitchell told Reuters.
Sales at its medical business, which includes products such
as surgical gowns, vials, plastic gloves and instruments, grew 1
percent to $2.4 billion in the quarter ended Sept. 30.
Cardinal blamed the slow growth on a slowdown in medical
Shares of the company, which have gained 11 percent in the
last three months, closed at $44.68 on the New York Stock
Exchange on Wednesday.