Post Holdings Inc. announced in a release that it will close its Post Consumer Brands cereal manufacturing facility in Lancaster, Ohio, in order to reduce capacity in its cereal production network. The plant is expected to be shuttered by the end of September 2024, the release said, with production capabilities transferred to other processing plants in the division.
Approximately 200 employees are currently working at the facility, which was acquired from TreeHouse Foods as part of its ready-to-eat cereal business in June 2021. Post has begun discussions with the workers’ union and notified employees of the plan.
Post expects cash and non-cash pre-tax charges of approximately $49 million to $55 million in connection with the closure of the Lancaster facility and transfer of production to other plants. Approximately $20 million in capital expenditures incremental to the company’s previous guidance are also estimated. Post expects it will achieve annual cost savings of roughly $23 million to $25 million upon completion of the plan, starting in fiscal year 2025.