George Weston Ltd. has signed a billion-dollar deal to sell its Weston Foods fresh and frozen bakery businesses to FGF Brands Inc., according to media reports from Canada.
The company put Weston Foods up for sale earlier this year as part of a plan to focus on its retail and real estate businesses.
George Weston says it remains committed to selling its remaining food business – comprised of cookies, cones, crackers and wafers.
The transaction is subject to regulatory approval and other closing conditions. It is expected to close before the end of the first quarter of 2022. The company says it expects to return the net proceeds from the sale to shareholders through share repurchases over time.
FGF Brands is an industrial baker based in Ontario, that uses robotics and artificial intelligence systems to make its breads and muffins. With facilities in Canada and the USA, FGF innovates, bakes, packages, and ships hundreds of thousands of products each day to retail and foodservice clients around the world.