George Weston has signed an agreement to sell its Weston Foods fresh and frozen bakery businesses to affiliated entities of FGF Brands in a CAD 1.2 billion ($970.6 million approx.) deal.
The company announced earlier this year that it had decided to divest its bakery segment in order to focus on its retail and real estate units.
The fresh and frozen bakery businesses included in today’s announcement comprised around 75% of Weston Foods’ 2020 net sales. George Weston also says that it is committed to selling its ambient business, which encompasses cookies, cones, crackers and wafers.
“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,” said George Weston chairman and CEO, Galen Weston.
“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.”
FGF co-founder Tejus Ajmera said: “We are thrilled to be acquiring the fresh and frozen businesses of Weston Foods, a Canadian company with over 100 years of baking experience. And we look forward to building on that legacy by investing in people, facilities and innovation across our entire operations, in collaboration with Weston Foods president Luc Mongeau and his team.”
The transaction is expected to close before the end of the first quarter of 2022, subject to regulatory approvals and customary closing conditions.
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