Citing the need to reduce capacity in its production network, Post Holdings Inc. has announced plans to close its cereal manufacturing plant in Lancaster, Ohio, by the end of September.
Production capabilities at the plant, which has about 200 employees, will be transferred to other Post Consumer Brands manufacturing locations. The company has engaged in discussions with the union representing Lancaster workers.
“We are continuously optimizing our network so that we can best serve our customers and consumers,” said President and CEO Nicolas Catoggio. “This facility closure enables Post Consumer Brands to continue offering a diversified portfolio of great products at a great value.”
The Lancaster facility has been part of the Post Consumer Brands business since June 2021, when it acquired the TreeHouse Foods ready-to-eat cereal business.
Post expects to incur cash and noncash pre-tax charges totaling $49-$55 million in connection with the closure and transfer of production capabilities.
As a result, Post Holdings expects to achieve annual cost savings of $23-$25 million, starting in fiscal year 2025.
About Post Holdings Inc.
Post Holdings Inc., headquartered in St. Louis, is a CPG holding company with businesses operating in center store, refrigerated, foodservice and food ingredient categories. They include Post Consumer Brands, Weetabix, Michael Foods and Bob Evans Farms.
Post Consumer Brands is a leader in the North American ready-to-eat cereal and pet food categories, as well as marketing Peter Pan peanut butter. Weetabix is home to the United Kingdom’s top selling ready-to-eat cereal brand, Weetabix. Michael Foods and Bob Evans Farms are leaders in refrigerated foods, offering value-added egg and refrigerated potato side dish products to foodservice and retail channels.
Read more center store news from The Shelby Report.
