George Weston concluded the sale of its shelf-stable bakery business to entities related to Hearthside Food Solutions of Illinois on Wednesday for $ 370 million.
Shelf-life baked goods include cookies, crackers, cones and waffles available across Canada and the United States.
This transaction was announced to the market on November 15.
George Weston has now sold all of its bakery business and will now focus on its retail and real estate business.
On October 26, 2021, George Weston entered into a definitive agreement to sell its fresh and frozen bakery business to FGF Brands of Toronto for $ 1.2 billion.
Combined, the sale of the fresh and frozen products business as well as the sale of the shelf life business represents the divestiture of all of George Weston’s bakery businesses, for a total value of $ 1.57 billion to a combined multiple of approximately 10 of the estimated 2021 earnings before interest, tax and amortization for the bakery division.
The company expects to return the net proceeds from the transactions to shareholders in the form of share buybacks over time.
George Weston had announced his intention to sell his Weston Foods division and focus on its retail and real estate business on March 23, 2021.
Founded in 1882, George Weston operates through the Loblaw Companies and Choice Properties Real Estate Investment Trust.