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Treehouse to close Pretzel Bakery in Visalia, California

Treehouse to close Pretzel Bakery in Visalia, California

The Visalia plant in California, currently owned by Treehouse, used to be one of the three pretzel bakeries of the National Pretzel Company when this company was still owned by Conagra Foods

February 20, 2018
Last week, TreeHouse Foods, Inc. announced the intention to close its facility in Visalia, California by the end of the first quarter of 2019. The plant primarily produces pretzels and cereal snack mixes for the Baked Goods segment.

Current pretzel production will be moved to other TreeHouse manufacturing facilities prior to the plant closure.

The decision is consistent with the August 2017 announcement of TreeHouse 2020, the Company's restructuring program. TreeHouse 2020 is a multi-year plan to fully integrate the business and reduce its cost structure in order to invest in market-differentiated capabilities that will serve the rapidly evolving needs of its customers who are strategically focused and highly committed to their corporate brands.

The closure, affecting approximately 294 employees, is being announced well in advance to provide employees with as much notice as possible and to ensure a seamless transition for customers.

The costs to close the Visalia facility are expected to be approximately $21 million, of which approximately $8 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $13 million, employee-related costs of approximately $3 million, and other closure costs of approximately $5 million. The Company expects charges of approximately $0.28 per fully diluted share to be incurred in 2018.
Companies in this Article
National Pretzel makes private label pretzels in a variety of forms, including rods, sticks, braids and twists for a variety of customers, including many of the top grocery retailers in America
TreeHouse Foods is a private label food and beverage leader focused on customer brands and custom products.