By Ben Glickman
MGP Ingredients said Thursday it would close a distillery in Kansas by January 2024.
The distilled spirits and food ingredient company said it would close its Atchison, Kan., distillery, which makes grain neutral spirits and industrial alcohol products, as part of its plan to address profitability within its distilling business.
MGP said in a regulatory filing that it expects to incur one-time expenses of $23 million to $31 million related to the closure, and for the closure to reduce net sales in the next year while helping margins. Restructuring expenses related to assets make up the majority of the costs.
The company said it also expects to spend about $4 million to $6 million to decouple the distillery from another facility in Atchison. The company would still continue to operate its ingredient solutions business in Atchison and its distillery in Lawrenceburg, Ind.
Write to Ben Glickman at ben.glickman@wsj.com