George Weston plans to divest Weston Foods

Canadian public company George Weston has initiated a process to sell Weston Foods to focus on its retail and real estate businesses.

Weston Foods is engaged in the production of packaged fresh bread and rolls for its retail and foodservice customers in Canada and the US.

Its product portfolio also includes frozen and artisan bread and rolls, cakes, donuts, pies, cookies, crackers, wafers and alternatives.

The company also 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.

George Weston chairman and CEO Galen Weston said: “Weston Foods has been at the core of our company for 139 years. It has a strong foundation, attractive and growing margins, a robust list of customers, strong brands, and a first-rate management team.

“As George Weston focuses its attention on Loblaw and Choice Properties, we are confident this is the right time to unlock the strategic growth potential that exists within Weston Foods through its sale.”

The divesture announcement was made by the company after a strategic review by the company’s board of directors.

George Weston said that it plans to commence an orderly sale process shortly and develop a transition plan as Weston Foods continues to support its customers and workforce.

The company has hired Houlihan Lokey and CIBC Capital Markets to advise on the sale process.

The proceeds from the sale could be returned to shareholders through share repurchases over time.

In 2020, Weston Foods registered a sales figure of $2.1bn and adjusted EBITDA of $200m.