TreeHouse Foods Announces Plans to Close Facility in California

TreeHouse Foods, Inc. announced the intention to close its facility in Visalia, California by the end of the first quarter of 2019.

The plant primarily produces pretzels and cereal snack mixes for the Baked Goods segment. Current pretzel production will be moved to other TreeHouse manufacturing facilities prior to the plant closure.

The Company announced its restructuring program in August 2017. 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 .

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 USD21m, of which approximately USD8m is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately USD13m, employee-related costs of approximately USD3m, and other closure costs of approximately USD5m.

TreeHouse Foods, Inc. is a manufacturer of packaged foods and beverages with over 40 manufacturing facilities across the United States, Canada and Italy that focuses primarily on private label products for both retail grocery and food away from home customers.