Weston Foods Fresh and Frozen Businesses to be Sold
Oct 27, 2021 By MarketDepth
George Weston Ltd. (TSX: WN) today announced its decision to sell the Weston Foods fresh and frozen bakery businesses to affiliated entities of FGF Brands Inc.
$1.2 Billion in Cash
The deal is set to have an aggregate cash consideration of $1.2 billion, representing nearly 10x the 2021 estimated EBITDA of its fresh and frozen bakery businesses.
“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.”Galen G. Weston, the Company’s Chairman and Chief Executive Officer
George Weston previously announced that the company would focus on its Retail and Real Estate businesses, and intends to return the net proceeds from the transaction to shareholders through share repurchases over time.
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.”FGF Co-Founder Tejus Ajmera