Bay Valley Foods Announces Plans to Close Portland, Oregon Facility
February 13 2008 - 5:15PM
PR Newswire (US)
PORTLAND, Ore., Feb. 13 /PRNewswire/ -- Bay Valley Foods, a
division of TreeHouse Foods, Inc. (NYSE:THS), today announced its
intention to close its Portland, Oregon pickle plant in early June
2008. The plant has 88 employees. An adjacent distribution center
is not a part of the pickle plant closure. George Jurkovich, Senior
Vice President, Operations, said, "The decision to close the
Portland plant was a difficult one because of the impact it will
have on employees and their families. The Portland employees have
demonstrated exceptional loyalty and dedication over the years.
Unfortunately, we have experienced a reduction in our pickle
volumes and Portland is our highest cost and lowest utilized
facility. Thus, we find it necessary to consolidate our
manufacturing network and close the Portland plant. Current
production at Portland will be absorbed by other Bay Valley Foods
facilities." Mr. Jurkovich said that the company will be working
closely with its customers to ensure an uninterrupted supply of
pickle products during the transition. He also indicated that
transition benefits and outplacement support would be provided to
employees. The Portland plant first opened in 1979 as Steinfeld's
Products Company. The plant was acquired in 1999 by Dean Specialty
Foods Group, which was spun off to Dean Foods shareholders in June
2005 as a separate public company and renamed TreeHouse Foods, Inc.
TreeHouse will record a non-recurring, pre-tax charge to operating
income of approximately $22.4 million, or $0.44 per share, in its
first fiscal quarter ending March 31, 2008. Ongoing annual cost
savings from the closing are expected to be $5.7 million. Due to
the timing of the closing, cost savings in 2008 are not expected to
be significant. TreeHouse is a food manufacturer servicing
primarily the retail grocery and foodservice channels. Its products
include non-dairy powdered coffee creamer; canned soup, salad
dressings and sauces; salsa and Mexican sauces; jams, jellies and
pie fillings under the E.D. Smith brand name; pickles and related
products; infant feeding products; and other food products
including aseptic sauces, refrigerated salad dressings, and liquid
non-dairy creamer. TreeHouse believes it is the largest
manufacturer of pickles and non-dairy powdered creamer in the
United States based on sales volume. This press release contains
"forward-looking statements." Forward-looking statements include
all statements that do not relate solely to historical or current
facts, and can generally be identified by the use of words such as
"may," "should," "could," "expects," "seek to," "anticipates,"
"plans," "believes," "estimates," "intends," "predicts,"
"projects," "potential" or "continue" or the negative of such terms
and other comparable terminology. These statements are only
predictions. The outcome of the events described in these
forward-looking statements is subject to known and unknown risks,
uncertainties and other factors that may cause the Company or its
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievement expressed or implied
by these forward-looking statements. TreeHouse's Form 10-K for the
year ended December 31, 2006 and its subsequent quarterly reports
discuss some of the factors that could contribute to these
differences. You are cautioned not to unduly rely on such
forward-looking statements, which speak only as of the date made,
when evaluating the information presented in this presentation. The
Company expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein, to reflect any change in its
expectations with regard thereto, or any other change in events,
conditions or circumstances on which any statement is based.
http://www.newscom.com/cgi-bin/prnh/20050726/CGTREELOGO
http://photoarchive.ap.org/ DATASOURCE: Bay Valley Foods CONTACT:
Ron Bottrell, +1-312-446-6595, for Bay Valley Foods Web site:
http://www.treehousefoods.com/
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