OAK BROOK, Ill., Nov. 18, 2015 /PRNewswire/ -- Bay Valley Foods, a wholly-owned subsidiary of TreeHouse Foods, Inc. (NYSE: THS), today announced its intention to close its City of Industry, California facility. The closure of the facility was determined after carefully reviewing the operation and identifying opportunities to lower production costs. Production is expected to cease in the first quarter of 2016 with full closure of the facility expected in the third quarter of 2016.
Total costs to close the facility are expected to be approximately $11.9 million, or $0.17 per fully diluted share, of which approximately $7.7 million, or $0.11 per fully diluted share, is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $3.7 million, employee-related costs of approximately $2.8 million and other closure costs of approximately $5.4 million. The Company expects approximately $1.1 million of the charges to be incurred in the fourth quarter of this year and approximately $2.1 million, $4.9 million and $3.8 million in the first, second and third quarters of 2016, respectively. Ongoing annual cost savings from the closing are expected to be approximately $1.0 million.
The City of Industry facility has approximately 62 employees and primarily produces branded liquid non-dairy creamer and refrigerated dressings for the food away from home industry. Production will be moved to other manufacturing facilities within the Company's existing network as well as to third-party facilities. The Company expects no supply disruptions during the transition.
ABOUT TREEHOUSE FOODS
TreeHouse is a manufacturer of packaged foods and beverages with 24 manufacturing facilities across the United States and Canada that focuses primarily on private label products for both retail grocery and food away from home customers. We manufacture a variety of shelf stable, refrigerated and fresh products, including pickles, soups, snacks, salad dressings, sauces, dry dinners, hot cereals, single serve hot beverages and beverage enhancers. We have a comprehensive offering of packaging formats and flavor profiles, and we also offer natural, organic and preservative free ingredients in many categories. Our strategy is to be the leading supplier of private label food and beverage products by providing the best balance of quality and cost to our customers.
Additional information, including TreeHouse's most recent statements on Forms 10-Q and 10-K, may be found at TreeHouse's website, http://www.treehousefoods.com.
This press release contains "forward-looking statements." Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as "may," "should," "could," "expects," "seek to," "anticipates," "plans," "believes," "estimates," "intends," "predicts," "projects," "potential" or "continue" or the negative of such terms and other comparable terminology. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause TreeHouse or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. TreeHouse's Form 10-K for the year ended December 31, 2014, and other filings with the SEC, discuss some of the factors that could contribute to these differences. You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made, when evaluating the information presented in this press release. TreeHouse expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.
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SOURCE Bay Valley Foods
Ron Bottrell 312.446.6595