George Weston to sell Weston Foods fresh and frozen bakery businesses to FGF Brands
George Weston, a Canadian food processing company, has agreed to divest the fresh and frozen bakery businesses of Weston Foods for CAD 1.2 billion ($956 million) in cash to affiliated entities of FGF Brands.
The fresh and frozen bakery businesses being sold to the Canadian bakery company made up nearly 75% of the 2020 net sales of Weston Foods, as per an announcement made in late October.
George Weston said that it is engaged actively in divesting its remaining ambient business, made up of cookies, crackers, wafers, and cones.
Galen G. Weston — George Weston Chairman and CEO said: “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.
“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.”
The fresh and frozen bakery businesses of Weston Foods include Weston Foodservice, a North American manufacturer. Weston Foodservice caters to retail and foodservice customers with packaged fresh bread and rolls and alternatives along with frozen and artisan bread and rolls, donuts, cakes, and pies in Canada and the US.
Weston Foods produces private label products and brands such as Wonder, ACE Bakery, D’Italiano, Country Harvest, Dave’s Killer Bread, Casa Mendosa, and Gadoua.
Tejus Ajmera — Co-Founder of FGF Brands 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 deal, which is subject to regulatory approvals and other customary conditions, is expected to close by the end of Q1 2022.