Dymatize Closes Factory
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Dymatize is closing their factory according to the Wall Street Journal. Post Holdings Inc. said it plans to permanently close its Dymatize plant in Texas by Dec. 1, following operational and quality issues that led the food company to transfer production of the brand to third-party facilities.
We had heard this rumour at this year's Olympia expo but it looks like it's more than just a rumour. In fact, the St. Louis-based cereal company said about 115 employees will be affected by the plant closure.
One challenge Post has faced has been understaffing and quality issues at Dymatize, a maker of protein powders, bars and nutritional supplements.
“We have determined that the cost and effort to bring this facility to an acceptable reliability and margin level is better deployed in brand building and sales infrastructure,” Post Chief Executive Rob Vitale said in prepared remarks Wednesday.
Post said that operational and quality issues at the Farmers Branch, Texas, plant resulted in a write-down of $9.2 million of unsalable inventory. Post expects to record charges of roughly $11 million to $16 million related to the plant closing, mostly in the current quarter.
Post in late 2013 agreed to acquire Dymatize from investors led by private-equity firm TA Associates for $380 million. The company also agreed to pay as much as $17.5 million in milestone payments for Dymatize.