George Weston Limited of Toronto has announced that it has signed a definitive agreement to sell its Weston Foods fresh and frozen bakery businesses to affiliated entities of FGF Brands Inc. for $1.2 billion.
The fresh and frozen bakery businesses comprised approximately 75 percent of Weston Foods’ 2020 net sales. 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 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.
“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 Galen 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.”
According to FGF Brands co-founder Tejus Ajmera, “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.”
Added Ajmera, “FGF remains a startup at heart and this acquisition allows us to bring that same drive for disruption to more teams, brands, and customers than ever before, as we pursue our vision to become the world’s greatest baker.”
George Weston announced on March 23, 2021, that it decided to sell its bakery segment and to focus on its retail and real estate businesses.
Subject to the receipt of all regulatory approvals and satisfaction of customary transaction closing conditions, George Weston expects to close the transaction before the end of the first quarter of 2022.