Post Holdings, Inc. announced plans to close two of its Post Consumer Brands cereal manufacturing facilities in Cobourg, Ont. and Sparks, Nev.
The planned closure of the facilities reflects Post's need to reduce capacity in its cereal production network, the company says in a statement. The two facilities together employ approximately 300 employees and are expected to close by the end of December 2025. Post Consumer Brands has notified employees of the decision. Production capabilities at the facilities will be transferred to other Post Consumer Brands manufacturing locations.
Regarding the planned closure of the facilities, Post Consumer Brands President and CEO Nicolas Catoggio says, "The ready-to-eat cereal category continues to decline. To respond to this, we are reducing excess manufacturing capacity and optimizing our North American plant network to better utilize our production capacity."
The Cobourg facility has been part of the Post Consumer Brands business since July 2017, when Post acquired Weetabix. The Sparks facility has been part of the business since June 2021, when Post acquired the Treehouse Foods ready-to-eat cereal business.
Post currently expects to incur cash and noncash pre-tax charges totaling approximately $63.5 to $67.5 million in connection with the transfer of production capabilities to other Post Consumer Brands locations and closure of the facilities. Completion of the transfer and startup of production at other locations is estimated to require capital expenditures of approximately $5 to $7 million, incremental to Post's previously announced capital expenditures guidance range of $380 to $420 million, in fiscal year 2025. As a result of the transfer of production capabilities to other locations and closure of the facilities, Post expects to achieve annual cost savings of approximately $21 to $23 million, starting in fiscal year 2026.
