OAK BROOK, Ill: TreeHouse Foods, Inc. (NYSE: THS) today announced the intention to close its Minneapolis, Minnesota facility by the end of the third quarter of 2019. The plant produces snack nuts and trail mix for the Snacks division.
The Company noted that the closure enables the Snacks division to streamline its operational footprint to position the business for success at lower volume levels. TreeHouse also noted that the strategic review of its premium nuts and trail mix business is ongoing. The Company anticipates being able to provide a more fulsome update around its Snacks business, along with updated full-year guidance, as part of its second quarter earnings release in early August.
The closure, affecting approximately 120 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 Minneapolis facility are expected to be approximately $13.0 million, of which approximately $4.0 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $9.0 million, employee-related costs of approximately $1.0 million and other closure costs of approximately $3.0 million. The Company expects charges of approximately $0.17 per fully diluted share to be incurred in 2019.