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Post to Close Cereal Manufacturing Facility

The facility has approximately 200 employees.

Staff

December 1, 2023

1 Min Read
Post closes cereal plant
Post has acquired pet food brands this year, and is closing a cereal production plant. Image courtesy of Jack Anderson / Stone via Getty Images

Post Holdings has announced plans to close its Post Consumer Brands cereal manufacturing facility in Lancaster, OH.

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.

“We are continuously optimizing our network so that we can best serve our customers and consumers," said Post Consumer Brands 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 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 $49 to $55 million in connection with the transfer of production capabilities to other Post Consumer Brands locations and closure of the Lancaster facility.

As a result of the transfer of production to other locations and closure of the Lancaster facility, Post expects to achieve annual cost savings of approximately $23 - $25 million, starting in fiscal year 2025.

In 2022, the cereal manufacturer invested $110 million in expansion of its Sparks, NV cereal production facility. This year, Post acquired pet food brands from J.M. Smucker. Most recently, last month the CPG giant purchased pet food company Perfection Pet Foods, a private label brand, for $235 million.

These transactions show that Post Holdings seems to be taking the pet food business seriously.

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Staff

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