Closure part of previously announced TreeHouse2020 plan.
OAK BROOK, ILL. — TreeHouse Foods, Inc. has announced plans to close its ready-to-eat cereal plant in Battle Creek, Mich. Previously, the company downsized the facility and subsequently determined the remaining operations would not be economically viable. Current production will be moved to other TreeHouse cereal manufacturing plants.
Approximately 84 employees will be affected. The plant closing is part of the company’s previously announced TreeHouse 2020 multi-year restructuring program. The plan is designed to reduce costs with an eye toward improving profitability.
Costs associated with the closing are expected to be approximately $30 million, of which approximately $20 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $10 million, employee-related costs of approximately $2 million, and other closing costs of approximately $18 million. The company expects to incur charges of approximately 38c per diluted share in 2018.
