George Weston has announced plans to sell its bakery business, as it looks to focus on its retail and real estate units.
The company has decided to sell Weston Foods – which it says represents a small part of its overall value – following a strategic review by its board of directors.
According to George Weston, the review determined that the company’s retail and real estate operations will remain its most significant drivers of long-term value creation.
“Weston Foods has been at the core of our company for 139 years. It has a strong foundation, attractive and growing margins, a robust list of customers, strong brands and a first-rate management team,” said George Weston chairman and CEO, Galen Weston.
“As George Weston focuses its attention on Loblaw and Choice Properties, we are confident this is the right time to unlock the strategic growth potential that exists within Weston Foods through its sale.”
Weston Foods manufactures bakery products including bread, cakes, pies and cookies, supplying customers in the retail and foodservice channels across Canada and the US.
The business – which had sales of CAD 2.1 billion ($1.7 billion approx.) last year – produces private label goods, as well as brands including Wonder, Country Harvest and D’Italiano.
George Weston plans to commence a sale process ‘shortly’ and says that proceeds from a divestiture are likely to be returned to shareholders through share repurchases over time.
© FoodBev Media Ltd 2022
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