George Weston Ltd. (GWL) is placing its Weston Meals bakery enterprise up on the market and doubling down on its core retail and actual property operations, the corporate stated Tuesday.
The transfer comes after efforts to develop the Toronto-based bakery enterprise by acquisitions got here up quick.
“We spent last year exploring opportunities to create a step change in Weston Food’s scale that would allow it to become a truly meaningful part of GWL value,” the corporate’s chairman and chief government, Galen G. Weston, stated throughout a convention name with analysts.
“But in the end, we did not find the right opportunity. Instead, it’s now clear that pursuing a sale represents the best way to unlock Weston Foods’ potential.”
The sale of the bakery enterprise will go away George Weston with its majority stake in grocery big Loblaw Firms Ltd., and a big curiosity in Alternative Properties Actual Property Funding Belief.
Whereas the bakery enterprise is simply a small a part of George Weston, it is a “very attractive asset to the right purchaser,” the corporate’s president and chief monetary officer Richard Dufresne instructed analysts.
“It has scale in the bakery industry as well as a leading market position in a number of categories,” he stated. “We are confident this is the right time to launch a sale process.”
Based in 1882, Weston Meals produces bread, rolls and different baked items in Canada and the U.S. The corporate earned $2.1 billion US in gross sales in 2020.
Loblaw president to retire
In reference to the sale, the corporate additionally introduced the retirement of Loblaw president Sarah Davis, efficient Might 6.
Davis might be succeeded by Galen G. Weston, who will return to his position as chairman and president at Loblaw along with persevering with his present job as chairman and CEO at George Weston.
“The sale of Weston Foods will allow me to dedicate renewed time and energy at Loblaw, as we increase our momentum in both our bricks-and-mortar network, and our leadership in digital and data,” Galen G. Weston stated.
The businesses additionally introduced that Robert Sawyer will be part of Loblaw as chief working officer and that Richard Dufresne, president and chief monetary officer of George Weston, will develop his obligations to incorporate chief monetary officer of Loblaw on Might 6.