Campbell Announces Commercial Agreements with Grupo Jumex, Conservas La Costena
Campbell Soup Company (NYSE: CPB) announced today that it has entered into commercial arrangements with Grupo Jumex and Conservas La Costeña that will expand the company's access to manufacturing and distribution capabilities in Mexico for its beverages, soups, broths and sauces.
Currently, Campbell employs approximately 330 people in Mexico. As a result of entering into these agreements, Campbell will close its plant in Villagrán, Mexico, and eliminate approximately 260 positions. The company plans to retain approximately 70 positions in R&D, sales, supply chain, marketing and general management. Production from the Villagrán facility will be transitioned to Grupo Jumex and Conservas La Costeña facilities in phases through September 2013. Campbell anticipates that it will record a restructuring charge of $9 million ($6 million after tax) related to this initiative, most of which will be incurred in the second quarter of fiscal 2013.
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