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Updated: Perrigo moving headquarters to Ireland
ALLEGAN, Mich. (NEWSCHANNEL 3) - A drug manufacturer owned and operated in West Michigan for more than a century is moving its headquarters overseas.
Today Perrigo announced it has agreed to buy Irish bio-tech company Elan in an $8.6 billion deal. The aquisition means Perrigo will take its top office out of Michigan and move it to Dublin, Ireland.
"We will no longer have the Perrigo stock issued from Michigan. It will be issued from Ireland,"said John Hendrickson, Executive VP of Global Operations & Supply Chain.
The company says the move will help it expand internationally. But perhaps the biggest incentive, a lower corporate tax rate.
The U.S. corporate tax rate is 35 percent; it's just 12.5 percent in Ireland.
"The Ireland tax rate is about 12.5 percent in that rate and so as we expand forward it gives us a great platform to expand forward across the seas and be more competitive with that tax rate with other international entities," said Hendrickson.
Perrigo says the move is expected to save the company about $150 million in the first year.
Despite dropping its headquarters in Allegan, the drug maker says it won't have any impact locally.
"There's no change in people, growth plans any of those kinds of things with our day-to-day operations," said Hendrickson.
The deal is still in the works and is expected to close in the next three to four months.
The company says that no jobs will be lost by the move.
Founded in Allegan 125 years ago, Perrigo makes unbranded over-the-counter pharmaceutical products for stores to label as their own. The company announced in January a $242 Million expansion creating 650 new jobs in Holland and Allegan.
On Monday Governor Snyder issued the following statement;
"We’re disappointed when any business moves its headquarters from Michigan, or, in this case, from the United States.
"But Michigan is still the comeback state. Government’s role is to create an environment for businesses and entrepreneurs to succeed, and we’ve done that. The business tax climate, for instance, climbed from 49th in the nation to seventh during the last two years.
"Businesses are continuing to invest and expand in Michigan. ADAC in West Michigan, for example, last week cut the ribbon on a $20 million dollar facility that will add jobs and help the company grow.
"And, it should be noted, Perrigo will continue to expand its presence in West Michigan even though its headquarters will be elsewhere. The company is investing $242 million in Michigan over three years in infrastructure and equipment to its site in Allegan and a new facility and new equipment in Holland Charter Township, and adding 650 jobs in the West Michigan area."
Newschannel 3's Brittany Gray has the latest details in the video report above.