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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.