Post Holdings, Inc. (POST), a consumer packaged goods holding company, on Wednesday announced that it has planned to close two of its Consumer Brands cereal manufacturing facilities in Cobourg and Sparks by the end of December.
By the closure, the company aims to reduce excess manufacturing capacity. The production from these facilities will be shifted to other Consumer Brands' manufacturing sites.
Around 300 employees have been informed of the decision to close.
Further, the company expects to spend around $63.5 to $67.5 million in total both in cash and non-cash pre-tax charges due to the planned facility closures and the transfer of production to other locations.
The company anticipates to spend a n additional $5 to $7 million in capital costs to complete the production transfer and start operations at other locations. This is an increase of its previously announced capital spending estimate of $380 to $420 million for fiscal year 2025.
Looking ahead to fiscal 2026, the company expects to save about $21 to $23 million each year as a result of closing the facilities and moving production to other locations.
In pre-market trading, Post is 1.07% lesser at $110.01 on the New York Stock Exchange.
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