Israeli pharmaceutical company Teva is expected to announce the sale of its Migada medical equipment plant to private equity investor FIMI Opportunity Funds for $45m.
The plant is based in Kiryat Shmona in Israel and its impending sale resulted in a labour dispute which lasted over several months and involved many strikes.
A collective labour agreement between Teva Pharmaceuticals and the workers at the Migada plant has recently been signed and includes a 3% annual pay increase over three years and more bonuses. The agreement, which FIMI reportedly has also signed up to, will also allow employees who wish to resign or are dismissed by September 2019 to have increased severance benefits, Haaretz has reported.
The sale of the Migada facility is said to be due to a move by Teva to sell off non-core assets and reduce its workforce in Israel, which would help to facilitate the company’s plans to reduce costs and save $3bn.
The plant has a workforce of 170 people and is one of a small number of Teva plants that produces medical equipment. Workers walked out in 2017 when Teva announced it would be cutting about 14,000 positions worldwide and that 1,750 of those cut jobs would be happening in Israel.
Migada’s annual sales are estimated between $30m and $35m. The plant’s flagship product is the Tevadaptor, a syringe adapter that has been designed to protect patients and clinicians from being harmed by hazardous drugs that are administered intravenously.
Teva’s CEO Kåre Schultz has been making significant attempts to cut costs and saw a major sell-off of its shares in autumn last year.