Actionable news
All posts from Actionable news
Actionable news in THS: TREEHOUSE FOODS Inc,

Treehouse: Bay Valley Foods Announces Plans To Close Ayer, Massachusetts Facility

The following excerpt is from the company's SEC filing.

Oak Brook, Ill., April 5, 2016 - Bay Valley Foods, a wholly-owned subsidiary of TreeHouse Foods, Inc. (NYSE: THS), today announced its intention to close its Ayer, Massachusetts facility. Production is expected to cease in the first quarter of 2017 with full closure of the facility expected in the third quarter of 2017.

The Ayer facility has approximately 100 employees and primarily produces regionally branded and private label spoonable dressings. The facility closure decision is the result of ongoing manufacturing network analysis by the Company to maintain competitive costs, service levels and product q uality. Products produced at the Ayer facility will be moved to other manufacturing facilities within the Companys existing network. The Company does not expect supply disruptions during the transition.

Total costs to close the facility are expected to be approximately $6.5 million, or $0.07 per fully diluted share, of which approximately $5.3 million, or $0.06 per fully diluted share, is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $1.2 million, employee-related costs of approximately $2.2 million and other closure costs of approximately $3.1 million. The Company expects to incur approximately $1.3 million in charges in each...