Post Holdings to shutter Ohio cereal plant

ST. LOUIS — In a strategic move to optimize its cereal production network, Post Holdings announced plans to shut down its Post Consumer Brands cereal manufacturing facility in Lancaster, Ohio. The decision aligns with the company’s broader efforts to enhance operational efficiency and streamline production capabilities.

The Lancaster facility, which has been a vital part of Post Consumer Brands since June 2021 following the acquisition of the TreeHouse Foods ready-to-eat cereal business, is slated to cease operations by the end of September 2024. Approximately 200 employees are expected to be affected by the closure, as production capabilities will be transferred to other manufacturing locations within the Post Consumer Brands portfolio.

“We are continuously optimizing our network so that we can best serve our customers and consumers,” said Nicolas Catoggio, president and chief executive officer of Post Consumer Brands. “This facility closure enables Post Consumer Brands to continue offering a diversified portfolio of great products at a great value."  

The company has initiated discussions with the union representing employees at the Lancaster facility and has informed affected personnel about the impending decision. Post anticipates cash and non-cash pre-tax charges of $49 million to $55 million related to the plant closing and transfer of production capabilities. 

The successful transfer and commencement of production at alternative locations are anticipated to necessitate capital expenditures totaling approximately $20 million. The amount is additional to Post’s previously disclosed capital expenditures guidance range for fiscal year 2024, which stands at $400 million to $425 million.

Despite the financial implications, Post foresees the strategic move resulting in annual cost savings of approximately $23 million to $25 million, beginning in fiscal year 2025. The consolidation aligns with the company’s commitment to maintaining a robust and efficient production network, ensuring the continued delivery of high-quality products to its customers while optimizing operational costs, Post said.