Medtech giant Medtronic is shutting down the Galway operation of Crospon, an Irish company is bought just more than a year ago.
The company told staff last week that it would close the site at the IDA Business Park at Dangan over the next 12 months. Production will move to other Medtronic facilities, including elsewhere in Galway city.
Medtronic, the world’s largest maker of medical devices, bought the Irish business in December 2017 for a reported €38 million. Crospon specialises in devices for diagnosing gastrointestinal conditions.
Speaking to The Irish Times after the company announced better-than-expected quarterly results and upgraded its full-year sales forecasts last week, chief executive Omar Ishrak said Crospon was doing well. "It's one that we're pleased with. The acquisition has been integrated fairly well."
Medtronic confirmed that Crospon’s R&D operations would remain in Ireland. “Medtronic operates within a highly-competitive global healthcare environment,” a spokesman for the company said, adding that it consistently evaluate its global operations to improve operational efficiency “As a result Medtronic will close its manufacturing facility in Dangan, Galway, Ireland, and move operations to other Medtronic facilities with similar capabilities.”
He said the Galway business manufactures the Endoflip imaging system, and Endoflip and Esoflip balloon catheters.
“The Endoflip system provides an internal view of the gastroesophageal junction during endoscopic and surgical procedures. Endoflip and Esoflip catheters are used to dilate the junction during endoscopy,” he explained.
Medtronic is headquartered in Ireland although for practical purposes its base of operations remains in the US. Its acquisition of rival Covidien in a $50 billion (€44bn) deal in 2015 was the last big corporate inversion – a controversial arrangement that saw many US companies acquire businesses in Ireland and elsewhere in order to reduce their exposure to high US corporate tax.
The company has a significant physical presence in Ireland, employing around 4,000 people.
“We recognise the strong work, dedication, and quality of the Crospon team,” the Medtronic spokesman said. “We are providing employee assistance to help affected employees through the transition.”