George Weston selling fresh and frozen bakery businesses for 1.2B

Toronto – George Weston Ltd. has signed an agreement to sell its Weston Foods fresh and frozen bakery businesses to FGF Brands Inc. for $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 three quarters of Weston Foods’ 2020 net sales.

In a news release, George Weston said it continues to be committed to selling its remaining ambient business – comprised of cookies, cones, crackers and wafers.

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.

The transaction is subject to regulatory approvals and closing conditions and is expected to close before the end of the first quarter of 2022.