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TreeHouse Foods to close Brooklyn Park, Minnesota and Plymouth, Indiana facilities

Published 04 August 2017

TreeHouse Foods has unveiled its intention to close facilities in Brooklyn Park, Minn., Plymouth, Ind., and transition non-peanut packaging operations out of Dothan, Ala.

The decisions are part of TreeHouse 2020, the Company's broad based restructuring plan to improve its competitive position and operating margin structure through a comprehensive program of category and customer portfolio management as well as manufacturing and supply chain optimization.

"The decisions to close these facilities are difficult ones given their impact on families and communities," said Mr. Sam K. Reed, Chairman and CEO of TreeHouse.

"However, despite the toll they exact, these measures are required if we are to remain competitive in a rapidly changing marketplace for packaged foods. In order to win in today's marketplace, we must not only produce the finest quality at the lowest costs, but also fully utilize the capacity of our plants and the capability of our people in doing so."

The Brooklyn Park, Minn. facility employs approximately 90 employees and produces boxed dinners and packaged side dishes. Production is expected to cease by the end of 2017.

The Plymouth, Ind. facility employs approximately 150 employees and produces banana peppers, jalapeños, pickles and pickle relish. Production is expected to cease by the end of 2017.

In Dothan, Ala. approximately 135 employees will be affected by the production transition over a 10 month period beginning in November of 2017.

The Company will provide outplacement support to employees whose positions are being eliminated.  

Total costs related to the announced facility closures are expected to be approximately $44.5 million, of which approximately $29.7 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $14.8 million, employee-related costs of approximately $7.0 million, and other closure costs of approximately $22.7 million.



Source: Company Press Release