From Bloomberg on the ReOrganization:
Innovex Consolidates Divisions, Appoints Murnane New President
Hopkins, Minnesota, July 28 (Bloomberg) -- Innovex, the maker of computer and medical components, said it would consolidate its two main operating divisions to concentrate on the computer disk drive and chip-packaging markets.
Litchfield Precision Components and Precision Products will be combined under the Innovex name during the next several months. Although the future of the company lies with the non-wire disk drive technology developed by Litchfield, Precision has high- volume manufacturing capabilities, company Senior Vice President Timothy S. McIntee said. ''It's a very logical consolidation,'' McIntee said. ''We have an established sales force and manufacturing with Precision and you're going to be able to combine that with the technology of Litchfield.''
McIntee said about 10 of the company's 600 employees could be fired as part of the consolidation. Most would be in accounting and related departments, though none would be in manufacturing, he said.
The Hopkins, Minnesota-based company also named William P. Murnane as president and chief operating officer. Murnane, 36, joined Innovex in 1995 as vice president for Corporate Development and oversaw the acquisition of Litchfield two years ago. He replaces Thomas Haley as president, although Haley remains as chief executive officer.
While Precision, which produces high-volume fine-wire components, has been the company's main division, the industry is moving away from that technology, Schroder & Co. Analyst Bradley L. Mook said. Litchfield's products will make more money for the company in the coming years, he said. ''I don't think it has much short-term effect on the stock,'' said Mook, who gives Innovex a ''buy'' rating. He thinks the shares will be at 36 in 12 months.
Shares of Innovex fell 1/16 to 13 1/2. |
