George Weston Limited has signed a definitive agreement to sell its Weston Foods fresh and frozen bakery businesses to affiliated entities of FGF Brands for aggregate cash consideration of almost $1 billion. The fresh and frozen bakery businesses comprised approximately 75% of Weston Foods' 2020 net sales.
Weston Foods fresh and frozen bakery businesses serve retail and foodservice customers with packaged fresh bread and rolls, as well as frozen and artisan bread and rolls, cakes, donuts, pies, and alternatives throughout Canada and the U.S. The company produces private label products and many well-known brands, including Wonder, Ace Bakery, Country Harvest, D’Italiano, Casa Mendosa, Dave’s Killer Bread, and Gadoua.
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The company expects to return the net proceeds from the transaction to shareholders through share repurchases over time. In the interim, it is committed to ensuring that a smooth transition plan is in place as Weston Foods continues to support its customers and workforce. George Weston continues to be committed to selling its remaining ambient business, comprised of cookies, cones, crackers, and wafers, and is actively engaged in that process.
“The Weston Foods business has been the foundation for the Weston Group in Canada since its establishment in 1882 and the decision to sell it was a difficult one,” says Galen G. Weston, the company’s chairman and CEO. “However, we are pleased that the purchaser of the fresh and frozen businesses is FGF, another long-standing family business with a strong presence in bakery and a significant footprint in Canada. With FGF as the new owner, the business will be in good hands.”