Post Holdings to Cut 200 Jobs on Close of New Jersey Office
18 May 2015 --- Post Holdings, Inc. (POST), a consumer packaged goods holding company, has announced plans to consolidate its Post Foods and MOM Brands cereal businesses into one group, to be headquartered in Lakeville, Minnesota, at MOM Brands' existing facilities. As a result, Post expects to close its office in Parsippany, New Jersey.
The Parsippany office closure is expected to be completed by May 2016. This decision will impact approximately 200 employees across the businesses. Post will offer severance and transition assistance to affected employees.
The combined business, called Post Consumer Brands, will be led by MOM Brands President Chris Neugent. Mr. Neugent will report to Rich Koulouris, who joined Post Holdings in February to lead Post Foods Group, comprising branded center-of-the-store (Post Consumer Brands) as well as its private label retail businesses.
"Combining our businesses in Lakeville will create a powerful branded platform for both branded cereal and further acquisitions," said Rob Vitale, Post Holdings' President and CEO. "While I am delighted that Chris and his colleagues are joining Post, we are acutely aware of the contributions made by employees negatively impacted by this decision, and we are committed to helping them through this transition."
In connection with these decisions, Post expects to incur pre-tax expenses of $27 million to $30 million for employee severance, retention and relocation payments. Approximately half of these charges are expected to be incurred in Post's third quarter of fiscal 2015 with cash payments in Post's fiscal 2016 and 2017. These expenses are a component of the previously announced total estimated one-time charges to achieve cost synergies of between $70 million to $80 million and will not impact Post's previously announced guidance for fiscal 2015.
These decisions are expected to result in savings as part of the approximately $50 million cost synergies which were previously announced in connection with the acquisition of MOM Brands. Post currently expects to realize approximately $50 million in run-rate cost synergies by the second full fiscal year following the closing of the MOM Brands acquisition.
