Post Holdings: Plans to Close Lancaster (OH) Facility

St. Louis / MO. (pfh) Post Holdings Inc., a consumer packaged goods holding company, announced plans to close its Post Consumer Brands cereal manufacturing facility in Lancaster, Ohio. The planned closure of the facility reflects Post’s need to reduce capacity in its cereal production network. The Lancaster facility has approximately 200 employees and is expected to close by the end of September 2024. Facility production capabilities will be transferred to other Post Consumer Brands manufacturing locations.

Regarding the closure, Post Consumer Brands President and CEO Nicolas Catoggio said, «We are continuously optimizing our network so that we can best serve our customers and consumers. 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 Post acquired the TreeHouse Foods ready-to-eat cereal business. Post Consumer Brands has engaged in discussions with the union representing employees at the Lancaster facility and has notified employees of the decision.

Post currently expects to incur cash and noncash pre-tax charges totaling approximately USD 49 to USD 55 million in connection with the transfer of production capabilities to other Post Consumer Brands locations and closure of the Lancaster facility. Completion of the transfer and start-up of production at other locations is estimated to require capital expenditures of approximately USD 20 million, incremental to Post’s previously announced capital expenditures guidance range of USD 400 to USD 425 million, in fiscal year 2024. As a result of the transfer of production capabilities to other locations and closure of the Lancaster facility, Post expects to achieve annual cost savings of approximately USD 23 to USD 25 million, starting in fiscal year 2025.