RestructuringMay 5, 2026, 06:16 AM
Ingredion to Cease Brazil Operations; Expects $43M Charges
AI Summary
Ingredion Inc. announced a plan to cease operations at its Cabo, Brazil manufacturing facility by June 30, 2026. The company expects to incur approximately $43 million in pre-tax non-recurring charges, including $36 million in non-cash impairment charges for fixed assets and inventory write-downs, and $7 million in cash expenditures for employee-related costs. The majority of these charges are anticipated in the second quarter of 2026, with the remaining charges extending through the first quarter of 2027. Ingredion also expects to sell the facility and its underlying real property.
Key Highlights
- Ingredion committed to cease operations at its Cabo, Brazil manufacturing facility by June 30, 2026.
- The company expects to incur approximately $43 million in pre-tax non-recurring charges.
- Approximately $36 million of these charges are expected to be non-cash impairment charges for fixed assets and inventory write-downs.
- Approximately $7 million is expected for cash expenditures related to employee costs and severance payments.
- The majority of charges are expected in Q2 2026, with the remainder through Q1 2027.
- The company expects to sell the Cabo manufacturing facility and underlying real property.