Milwaukee-based Sensient Technologies Corp. unveiled a strategic and restructuring plan that will include relocating its Flavors & Fragrances Group headquarters, technical groups and North American management from Indianapolis to Chicago.
The company said the relocation of the Flavors & Fragrances Group headquarters will give the firm better access to its customers, improve its access to food industry talent, improve access to worldwide air service and allow it to showcase its broad product portfolio in a state-of-the-art facility.
Sensient expects to incur personnel and moving related costs between $12 million and $14 million over the next 12 to 18 months as a result of this relocation. The plan does not anticipate the relocation of the Indianapolis production site.
The second component of the plan will generate operating efficiencies throughout the company. The plan will reduce headcount and consolidate several facilities throughout Europe and North America. The company expects to reduce its global headcount by more than 200 employees, and consolidate several manufacturing sites during the next 12 months.
The company expects to reduce its annual operating costs by about $10 million as a result of the changes.
Sensient reported record revenue and earnings per share for 2012. Consolidated revenue was $1.5 billion in 2012, compared with $1.4 billion in 2011. Diluted earnings per share increased to $2.49 for the year, up from $2.41 reported in 2011.
“We achieved record revenues and earnings for a third consecutive year despite a very challenging environment,” said Kenneth Manning, chairman and chief executive officer of Sensient. “We increased our dividend, repurchased shares and continued to reinvest in our business during 2012. The company is strong and the 2013 restructuring activities will give us better access to our customers, increase our efficiencies and improve our operating margins. We continue to see growth opportunities and I am very optimistic about the company’s future.”
“The footprint here (in Milwaukee) will not be affected (by the restructuring),” Steve Rolfs, Sensient’s vice president of administration, told BizTimes.