(Toronto) George Weston announced Tuesday that he has signed a deal that will offer him to sell fresh and frozen baked goods from Weston Foods to FGF Brands for $1.2 billion.
The company had put Weston Foods up for sale in March, as part of a plan to focus on its retail and real estate business, including its large ownership stake in the Loblaw Companies and an ownership stake in the Real Estate Investment Trust.
“The Weston Foods business has been the heart of the Weston Group in Canada since its founding in 1882 and the decision to sell it has been difficult,” said President and CEO George Weston in a statement, Galen J.
However, we are pleased that the acquirer of the fresh and frozen produce business is FGF, another long-running family business with large bakery operations and a strong presence in Canada. With FGF as the new owner, the business will be in good hands. ”
Weston Foods produces bread, rolls, and other baked goods in Canada and the United States. The company manufactures private label products, as well as products of the Gadoua, Wonder, D’Italiano and others brands.
The fresh and frozen bakery business accounted for approximately 75% of Weston Foods net sales in 2020.
George Weston clarified Tuesday that he remains determined to sell Weston Foods’ remaining food business, which includes cookies, cones, crackers and waffles.
FGF Brands is a Canadian family owned bakery company established in 2004, who owns bakeries in Canada and the United States. Its brands include Stonefire Authentic Flatbreads and Simple Joys Bakery.
The sale is subject to regulatory approval and other closing conditions, and is expected to be completed before the end of the first quarter of 2022.
George Weston has indicated that he plans to return the net proceeds from the transaction to shareholders through share buybacks over time.
“Food trailblazer. Passionate troublemaker. Coffee fanatic. General analyst. Certified creator. Lifelong music expert. Alcohol specialist.”