GlaxoSmithKline (NYSE: GSK) plans to divest a number of its over-the-counter brands, including the ones it manufactures in Memphis. The plant — located at 2149 Harbor Ave. — makes BC, Goody’s and Stanback headache powder and Chap-Et lip balm, all brands the company is selling.
In total, brands the company are unloading comprised annual sales of $533 million in 2010 and make up about 10 percent of its total consumer health care sales.
GlaxoSmithKline, which is based in the U.K., will begin talks with interested buyers in the next few weeks and hopes to sell the non-core assets by late 2011. Other brands the company is selling include Zantac OTC, Beano, Alli and Nytol.
Steve Hawthorne, site director of the Memphis facility, said the decision was difficult for the company.
“It must be stressed that the decision reflects the strategic requirements necessary to support the continued growth of our brands and is not a reflection of the workforce, whose performance has been of the highest caliber,” Hawthorne said.
Plant production in Memphis will continue as normal until a buyer is identified.
GlaxoSmithKline invested $5 million in the plant in 2008, expanding its size and technological efficiency.
Memphis isn’t the only facility affected by the sale. The company also is selling its facility in Aiken, S.C.
