Company: THS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001320695-25-000089
Chunk: 26

Company: TreeHouse Foods, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 achieve significant cost-savings, and enhance profitability and cash flow, while improving quality and service levels. This resulted in employee-related severance costs which are included within Accrued expenses in the Condensed Consolidated Balance Sheets.Ready-to-drink Business ExitDuring the second quarter of 2024, the Company made the decision to exit the Ready-to-drink ("RTD") business as part of the Company's portfolio optimization strategy to focus on higher-growth, higher margin categories. During the first quarter of 2025, production for the RTD business ceased, and the Company sold the related machinery and equipment for a loss of $0.6 million. The loss on sale of the RTD assets was recorded within Other operating expense, net in the Condensed Consolidated Statements of Operations. The total costs related to the business exit are expected to be approximately $5.0 million, and the cumulative costs incurred to date are $3.8 million. These costs include the decommissioning and disposal of related assets and inventory, as well as other transitioning costs. The costs incurred for the three months ended March 31, 2025 were $1.9 million.Facility ClosuresDuring the first quarter of 2025, the Company announced the closure of its New Hampton, Iowa facility in response to sustained shifts in consumer demand in the non-dairy creamer ("NDC") category and ongoing efforts to optimize our manufacturing footprint. Production at the facility is expected to cease in the third quarter of 2025. The Company will be consolidating NDC production into two existing facilities: Wayland, Michigan, and Pecatonica, Illinois. The Company expects the total costs related to the New Hampton facility closure and transition of production from New Hampton to the two existing facilities to be approximately $13.0 million. The costs incurred for the three months ended March 31, 2025 were $3.2 million.During the first quarter of 2024, the Company announced the closure of its Sioux Falls, South Dakota facility in connection with the integration of the Seasoned Pretzel Capability and has transitioned production from Sioux Falls to its Hanover, Pennsylvania facility. The costs related to this closure and the related production transition were insignificant.During the fourth quarter of 2023, the Company completed the closure of its Dallas, Texas Coffee facility in connection with the integration of the Coffee Roasting Capability and transitioned production from Dallas to its Northlake, Texas facility during the first half of