MGP INGREDIENTS INC (MGPI): restructuring charge — MGP Ingredients to close Atchison distillery; FY2023 charges $23-31M

MGP INGREDIENTS INC

Closure of grain neutral spirits and industrial alcohol distillery expected by January 2024.
Pre-tax charges of $23-31M in FY2023: $17-21M non-cash impairments, $2-4M cash severance/contract fees.
Additional $4-6M capex for decoupling from Ingredient Solutions facility.
Closure expected to reduce 2024 net sales but be accretive to consolidated gross margin percentage.
Company cites structural market oversupply and higher local corn basis costs as key headwinds.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

MGP INGREDIENTS INC announced a restructuring with charges of approximately $23.0 to $31.0 million affecting Distilling Solutions segment (Atchison Distillery).

Type: restructuring
Charge: approximately $23.0 to $31.0 million
Affected area: Distilling Solutions segment (Atchison Distillery)

Exact text from the filing

On July 12, 2023, the Board of Directors of MGP Ingredients, Inc. (the “Company”) approved the decision to close the Company’s distillery located in Atchison, Kansas (the “Atchison Distillery”). The anticipated closure date is January 2024. The decision to close the Atchison Distillery is consistent with the Company’s plan to address profitability headwinds associated with its white goods and industrial alcohol products within its Distilling Solutions segment. The Company currently expects to incur one-time aggregate pre-tax charges of approximately $23.0 to $31.0 million in fiscal year 2023 in connection with the closure of the Atchison Distillery.

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Source: SEC EDGAR

accession 0001628280-23-024818

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