US – TreeHouse Foods, Inc., a manufacturer of packaged foods and beverages, has announced the intention to close its facility in Visalia, California by the end of the first quarter of 2019.
The plant, which primarily produces pretzels and cereal snack mixes for the Baked Goods segment, will have its pretzel facility moved to other TreeHouse manufacturing facilities prior to the plant closure.
The decision is consistent with the August 2017 announcement of TreeHouse 2020, the Company’s restructuring program.
TreeHouse 2020 is a multi-year plan to fully integrate the business and reduce its cost structure in order to invest in market-differentiated capabilities that will serve the rapidly evolving needs of its customers who are strategically focused and highly committed to their corporate brands.
The closure, affecting approximately 294 employees, is being announced well in advance to provide employees with as much notice as possible and to ensure a seamless transition for customers.
The costs to close the Visalia facility are expected to be approximately US$21 million, of which approximately US$8 million is expected to be in cash.
Components of the charges include non-cash asset write-offs of approximately US$13 million, employee-related costs of approximately US$3 million, and other closure costs of approximately US$5 million.
The Company also expects charges of approximately US$0.28 per fully diluted share to be incurred in 2018.