Post Holdings to Close Its Dymatize Manufacturing Facility and Permanently Transfer Production to Third Parties; Affirms 2015 EBITDA Guidance

Post Holdings, Inc.(NYSE: POST), a consumer packaged goods holding company, today announced itwill close its Dymatize manufacturing facility in Farmers Branch, Texas andpermanently transfer production to third party facilities underco-manufacturing agreements. The decision will impact approximately 115employees. Post has committed to providing severance and transitionassistance to all affected employees. "We have determined that the cost and effort to bring this facility to anacceptable reliability and margin level is better deployed in brand buildingand sales infrastructure," said Rob Vitale, Post's President and CEO. "Thisdecision enables us to focus on rapidly changing consumer trends, developinginnovative products and building upon the strong Dymatize brand." As a result of plant operational and quality issues, the manufacturingfacility has ceased production, resulting in a write-off of approximately$9.2 million of unsalable inventory. Final closure of the facility isexpected to be completed by December 1, 2015, and through Dymatize's strongrelationships with certain co-manufacturers, production of the Dymatizeproducts by third parties has begun. In connection with the closure, Post expects to incur pretax charges ofapproximately $11 million to $16 million, which will be treated asadjustments for purposes of calculating Adjusted EBITDA and other non-GAAPmeasures. These charges include approximately $4 million to $6 million forseverance, retention and other plant closure costs and a reserve ofapproximately $7 million to $10 million for usable inventory rendered lessthan fully recoverable by the decision to close the manufacturing facility.These charges are expected to be incurred primarily in Post's fourth quarterof fiscal 2015, of which approximately $2.5 million to $3.5 million will beincurred in fiscal 2016. The estimates discussed above exclude any non-cash impairment charges, whichcannot be determined at this time. Post will be evaluating the need fornon-cash impairment charges on the carrying value of goodwill, intangiblesand property, plant and equipment associated with Dymatize in connectionwith the preparation of Post's fiscal fourth quarter financial statements. Confirmation of Fiscal 2015 Adjusted EBITDA Guidance Today, Post management also affirmed its fiscal 2015 Adjusted EBITDAguidance to be between $635 million and $650 million, which includes theimpact of the write-off of approximately $9.2 million of unsalable inventorydescribed above, which will not be treated as an adjustment for the purposeof calculating Adjusted EBITDA and other non-GAAP measures.