TreeHouse Foods, Inc. will close two manufacturing plants—one in Azusa, CA and the other in Ripon, WI—it bought from ConAgra in February when it acquired the company’s private label business for $2.7 billion.
TreeHouse says the decision is the result of an analysis to streamline operations and eliminate excess manufacturing capacity.
Closing the facilities eliminates 720 jobs, the bulk of which (660) will be from the California plant which produces bars and snacks. Products produced at the plant will moved to other manufacturing facilities within its existing plant network. The facility is expected to fully close by the second quarter of 2017. TreeHouse says it foresees closing the Wisconsin facility within the fourth quarter of this year. The private sugar wafer products manufactured at the plant will be discontinued because of declining demand.
TreeHouse says it will provide severance benefits, transitional support and outplacement services to employees whose positions are being eliminated. Closing both plants is expected to cost TreeHouse approximately $17 million.