In the news release, TreeHouse Foods Announces Plans to Complete Facility Closure in Battle Creek, Mich., issued 31-Jan-2018 by TreeHouse Foods, Inc. over PR Newswire, we are advised by the company that the second paragraph, first sentence, should read "The Battle Creek facility produces ready-to-eat cereal." rather than "The Battle Creek facility produces ready-to-eat cereal, primarily for the North American Retail Grocery segment." as originally issued inadvertently. The complete, corrected release follows:
TreeHouse Foods Announces Plans to Complete Facility Closure in Battle Creek, Mich.
OAK BROOK, Ill., Jan. 31, 2018 /PRNewswire/ -- TreeHouse Foods, Inc. (NYSE: THS) today announced its intention to close its remaining operations in Battle Creek, Michigan. In November 2016, TreeHouse announced its initial decision to downsize the Battle Creek facility. Following completion of the first phase of downsizing, it was determined that the remaining operations would not be economically viable. Current production at Battle Creek will be moved to other TreeHouse cereal manufacturing facilities. 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 Battle Creek facility produces ready-to-eat cereal. The closure of remaining operations will affect approximately 84 employees by the fourth quarter of 2018. The decision is being announced well in advance of the closure in order to provide employees with as much notice as possible and to ensure a seamless transition for customers.
The costs to close the remainder of the Battle Creek facility 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 closure costs of approximately $18 million. The Company expects charges of approximately $0.38 per fully diluted share to be incurred in 2018.
ABOUT TREEHOUSE FOODS
TreeHouse Foods, Inc. is a manufacturer of packaged foods and beverages with a network of 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. We manufacture shelf stable, refrigerated, frozen and fresh products, including beverages (single serve beverages, coffees, teas, creamers, powdered beverages and smoothies); meals (cereal, pasta, macaroni and cheese and side dishes); baked goods (refrigerated and frozen dough, cookies and crackers); condiments (pourable and spoonable dressing, dips, pickles, and sauces) and snacks (nuts, trail mix, bars, dried fruits and vegetables). 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.
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, 2016, 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 TreeHouse Foods, Inc.
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