ST. LOUIS, March 12, 2015 (GLOBE NEWSWIRE) -- Post Holdings, Inc. (NYSE:POST), a consumer packaged goods holding company, today announced plans to close its facility in Boise, Idaho, manufacturing PowerBar® products distributed in North America.
The closure of the plant is expected to be completed by July 2015. Post management expects to transfer production of the PowerBar® products to third party facilities under co-manufacturing agreements.
"We regret that this decision will impact our employees in Boise, but we believe this is a necessary step to improving the PowerBar® business model, the flexibility of the brand and improving long-term profitability," said Rob Vitale, Post's President and CEO. "We remain committed to ensuring that the PowerBar® products continue to be manufactured to the highest quality standards."
The decision will impact approximately 165 employees. Post has committed to providing severance and transition assistance to all affected employees.
The closure is expected to improve efficiency, decrease costs and grow the profit contribution of the PowerBar® brand. Upon closure of the facility and transfer of production, Post expects to achieve net pretax annual cash manufacturing cost savings of approximately $4 million beginning in Post's fiscal year 2016. In connection with the closure, Post expects to incur one-time pretax charges of approximately $5 million, primarily in Post's second quarter of fiscal 2015.
