U.S. Markets close in 5 hrs 58 mins

Blog Exposure - Treehouse Foods to Close Facility in Visalia, California

LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free research report on Treehouse Foods, Inc. (THS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=THS as the Company's latest news hit the wire. On February 15, 2018, the Company announced that it plans to close its facility in Visalia, California, by the end of Q1 2019. The plant primarily produces pretzels and cereal snack mixes for the Company's Baked Goods segment. Current pretzel production will be moved to other TreeHouse manufacturing facilities prior to closing. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Treehouse Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Total Costs to Close the Facility

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. Treehouse expects charges of approximately $0.28 per fully diluted share to be incurred in 2018. The closure will affect around 294 employees. The decision is being announced well in advance to provide employees with as much notice as possible and to ensure a seamless transition for customers.

Treehouse reported financial results on February 15, 2018, for the fourth quarter ended December 31, 2017. The Company incurred a net loss from continuing operations of $309.0 million in Q4 FY17 compared to the net profit of $281.8 million in Q4 FY16. The Company's operational results were disappointing.

Fourth Closure in Seven Months

  • On January 31, 2018, the Company announced its intention to close its remaining operations in Battle Creek, Michigan. In November 2016, Treehouse announced its initial decision to downsize the Battle Creek facility. The Battle Creek facility produced ready-to-eat cereal, primarily for the North American Retail Grocery segment, and the production would be moved to other Treehouse cereal manufacturing facilities. The closure of remaining operations would affect around 84 employees by Q4 2018.
  • On August 03, 2017, TreeHouse declared its plan to close facilities in Brooklyn Park, Minnesota, Plymouth, Indiana, and transition non-peanut packaging operations out of Dothan, Alabama. The Brooklyn Park facility employed 90 employees and produced boxed dinners and packaged side dishes. The Plymouth facility employed approximately 150 employees and produced banana peppers, jalapeños, pickles and pickle relish. In Dothan, around 135 employees would be affected by the production transition.

Decision is Consistent with the Company's Restructuring Program

The decision is consistent with the August 2017 announcement of Treehouse 2020, the Company's restructuring program. Treehouse 2020 is a comprehensive strategic blueprint that consists of aggressive actions to manage the Company's category and customer portfolio and optimize its manufacturing and supply chain. It is a multi-year plan designed to improve Treehouse's operating margin structure by approximately 300 basis points by the end of 2020 by fully integrating its business and reducing its cost structure in order to invest in market-differentiated capabilities that will serve the rapidly evolving needs of its customers that are strategically focused and highly committed to their corporate brands.

About Treehouse Foods, Inc.

Founded in 2005, Treehouse Foods is a manufacturer of packaged foods and beverages with a network of manufacturing facilities across the United States, Canada, and Italy that focuses primarily on private label products for both retail grocery and food away from home customers. The Company manufactures shelf stable, refrigerated, frozen and fresh products, including beverages, meals, baked goods, condiments, and snacks.

Stock Performance Snapshot

February 16, 2018 - At Friday's closing bell, Treehouse Foods' stock rose 2.13%, ending the trading session at $38.28.

Volume traded for the day: 3.72 million shares, which was above the 3-month average volume of 922.12 thousand shares.

After last Friday's close, Treehouse Foods' market cap was at $2.19 billion.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third-party research service company (the ''Reviewer'') represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the ''Sponsor''), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors