The transfer comes after efforts to develop the Toronto-based bakery enterprise via acquisitions got here up quick.
“We spent final 12 months exploring alternatives to create a step change in Weston Meals’s scale that might enable it to turn out to be a really significant a part of GWL worth,” the corporate’s chairman and chief government, Galen G. Weston, mentioned throughout a convention name with analysts.
“However in the long run, we didn’t discover the correct alternative. As an alternative, it is now clear that pursuing a sale represents the easiest way to unlock Weston Meals’ potential.”
The sale of the bakery enterprise will depart George Weston with its majority stake in grocery large Loblaw Corporations Ltd., and a big curiosity in Selection Properties Actual Property Funding Belief.
Whereas the bakery enterprise is just a small a part of George Weston, it is a “very enticing asset to the correct purchaser,” the corporate’s president and chief monetary officer Richard Dufresne informed analysts.
“It has scale within the bakery trade in addition to a number one market place in quite a lot of classes,” he mentioned. “We’re assured that is the correct time to launch a sale course of.”
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 Could 6.
Davis shall 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 Meals will enable me to dedicate renewed time and vitality at Loblaw, as we enhance our momentum in each our bricks-and-mortar community, and our management in digital and knowledge,” Galen G. Weston mentioned.
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 broaden his tasks to incorporate chief monetary officer of Loblaw on Could 6.
