George Weston announced that it agreed to sell its Weston Foods fresh and frozen bakery businesses to FGF Brands Inc. for CAD1.2 billion. The fresh and frozen bakery businesses comprised approximately 75% of Weston Foods’ 2020 net sales. George Weston will focus on selling its remaining ranges, comprising cookies, cones, crackers and wafers. “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 CEO. “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.”
“We are thrilled to be acquiring the fresh and frozen businesses of Weston Foods, a Canadian company with over 100 years of baking experience,” said FGF Co-Founder Tejus Ajmera. “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 remains a startup at heart and this acquisition allows us to bring that same drive for disruption to more teams, brands, and customers than ever before, as we pursue our vision to become the world’s greatest baker,” added FGF co-founder Ojus Ajmera.
George Weston announced the decision to sell its bakery segment on March 23, 2021, to focus on its retail and real estate businesses. The transaction is expected to be closed before the end of the first quarter of 2022. The Weston Foods fresh and frozen bakery businesses serve retail and foodservice customers with packaged fresh bread and rolls and alternatives, as well as frozen and artisan bread and rolls, cakes, donuts and pies throughout Canada and the United States. The company 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®.
FGF Brands is a Canadian, family-owned bakery company founded in 2004. “A technology company that bakes,” FGF combines innovations in robotics, AI systems, and supply chain solutions with a commitment to making quality food with the cleanest possible ingredients. FGF operates in 7 bakery categories and owns multiple brands, including Stonefire Authentic Flatbreads and Simple Joys Bakery, manufactured in bakery locations across Canada and the United States, with its Home Office in Toronto, Ontario. FGF takes a product-first approach to its business, with a focus on long-term capital investment, focused Team Member development, and a culture of continuous improvement.