Premium Brands to close Toronto processed meats facility

Jan. 27, 2015, Vancouver – Premium Brands Holdings Corporation plans to close its processed meats plant located in Toronto in December 2015.

Jan. 27, 2015, Vancouver – Premium Brands Holdings Corporation plans to close its processed meats plant located in Toronto in December 2015.

Various options were considered to continue to operate this leased
facility, which was built in 1958, but due to its age and its location
in a predominantly residential area, none was economically feasible, the company said in a news release.

The
Toronto plant currently produces branded and private-label processed
meats for a variety of retail and foodservice customers. The company
intends to gradually transition a portion of this business to its other
production facilities in Ontario starting in the spring with the final
shutdown date scheduled for December 2015. The closure will affect
approximately 200 employees, each of whom will receive severance
packages and will have access to personal counselling and outplacement
services and workshops.

"While necessary, we
regret the impact the shutdown will have on our employees at the Toronto
plant," said John Beliveau, chief operating officer of Premium Brands' Retail
Group, in the release. "We greatly appreciate their years of service and dedication and
will do our best to help them through this time of transition."

The costs associated with the
shutdown, which will consist primarily of employee severance outlays,
are estimated at $7.3 million ($5.4 million after tax), most of which
will be expensed in the fourth quarter of 2015.

"The
shutdown of the Toronto plant and the corresponding transfer of
production to our three other state-of-the-art or recently renovated
deli meat production facilities in Ontario, combined with the
investments we are making in expanding the capacity of these facilities,
is expected to result in an increase in our pre-tax earnings of
approximately $2.4 million," Beliveau said.