TreeHouse Foods Names New President, CFO; To Close Delta Facility - Quick Facts

(RTTNews) - While reporting its third-quarter results today, TreeHouse Foods, Inc. (THS) said that Christopher Sliva has tendered his resignation as President in order to pursue another career opportunity.

Dennis Riordan, Executive Vice President and Chief Financial Officer, whose upcoming retirement was announced in August, has committed to remain with the company and serve as President while the company conducts a search for a new President. Riordan will have oversight of both of the operating companies - Bay Valley Foods and TreeHouse Private Brands.

TreeHouse Foods also said that its board of Directors has appointed Matthew Foulston, aged 52, as Executive Vice President and Chief Financial Officer.

Foulston was most recently CFO of Compass Minerals International, Inc. where he was responsible for accounting, financial planning and reporting, tax, internal audit, capital investment management and investor relations.

To ensure a smooth transition, Foulston has agreed to remain with Compass Minerals through December 1, 2016. Consequently, he will join TreeHouse no later than December 2, 2016.

TreeHouse Foods also said it intends to close a facility in Delta, British Columbia and reduce its manufacturing footprint in Battle Creek, Michigan. The decision follows an analysis of the company's plant network to align operations with the current and future needs of its customers as well as eliminate excess manufacturing capacity.

The Delta facility employs about 90 employees and produces frozen griddle products, primarily for the North American Retail Grocery segment. Production is expected to cease in early 2018. The company operates two facilities in Delta, and this announcement only affects the frozen griddle facility.

Total costs to close the Delta facility and downsize Battle Creek are expected to be approximately $14.7 million, or $0.16 per share, of which about $6.8 million, or $0.08 per share, is expected to be in cash.

Components of the charges include non-cash asset write-offs of about $7.9 million, employee-related costs of about $4.6 million and other closure costs of about $2.2 million.

The company expects approximately $4.0 million and $3.1 million of the charges to be incurred in the fourth quarter of this year and the first quarter of 2017, respectively, with the balance of the charges being incurred through the end of 2018.