George Weston Limited announces sale of its Weston Foods Fresh and Frozen Businesses
George Weston Limited 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. ("FGF") for aggregate cash consideration of $1.2 billion. The purchase price represents approximately a 10.0x multiple on the 2021 estimated EBITDA of the Weston Foods fresh and frozen bakery businesses. 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 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 G. Weston, the Company's chairman and chief executive officer. "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."