Thursday, October 26, 2006
By Dave Alexander
CHRONICLE BUSINESS EDITOR

An East Coast leader in effervescent antacid manufacturing has purchased the Perrigo Co. plant in Montague and plans to continue operations and retain more than 40 White Lake jobs.

Perrigo in June announced it was closing the 85,000-square-foot Montague operations at 8060 Whitbeck by the end of the year, threatening the jobs of about 70 workers. The city of Montague and Muskegon Area First brought Tower Laboratories Ltd. in to explore the plant's continued operations.

Allegan-based Perrigo -- a publicly traded global manufacturer supplying the over-the-counter pharmaceutical markets -- announced Wednesday it reached an agreement to sell the Montague facility to Tower. The plant makes products such as the store-brand equivalents of Alka-Seltzer.

Tower began posting about 45 jobs Wednesday that will be retained within the plant, and interviewing Perrigo employees, said Don Mesite, Tower director of administration. The plant is expected to transfer control to Tower in the first week of December.

"We are pleased that with the sale to Tower, the Montague facility will remain in operation and provide an opportunity for our employees to be retained by Tower," Perrigo Executive Vice President and General Manager John T. Hendrickson said in a prepared statement. "Additionally, we are committed to working with Tower to minimize any disruption to our customers and provide them an uninterrupted source of supply for their effervescent tablet requirements."

Specific terms of the plant sale were not disclosed, but Tower officials said they are not acquiring all of the plant's equipment. Perrigo officials had said it was phasing out its Montague operations and would have it closed by the end of the year.

Muskegon Area First President Jim Edmonson said Perrigo is getting out of the effervescent market, which is an area in which Tower has built its business.

"We have been involved with Perrigo when they have gotten out of other effervescent products," Mesite said. "Perrigo's move peaked our interest. It seemed like a good fit for us."

The Tower-Perrigo deal is a win for the community, Edmonson said.

"It should be a seamless transition of operations and for the employees," Edmonson said. "It is great to fill a plant that was closing and maintain quality manufacturing jobs in the county."

The Perrigo plant has been operating at less than 100 percent capacity, Edmonson said. He said Tower offers opportunities for expansion and new capital investment.

Tower Laboratories is a Centerbrook, Conn.-based manufacturer that claims to be the "premier effervescent source," according to company marketing material. It has more than 150,000 square feet of manufacturing space in Centerbrook and in Clinton, Conn., which also is the company's distribution center.

The privately held company makes effervescent products as a contract manufacturer for major brands, and supplies private label markets.

The company's product line includes denture cleanser tablets, antacids, cold medications, laxatives, potassium supplements, instant soft drink tablets and bath tablets, according to company marketing materials.