Houlihan Lokey Advises George Weston Limited (1)

Houlihan Lokey is pleased to announce that George Weston Limited has sold its Weston Foods fresh and frozen bakery businesses to affiliated entities of FGF Brands Inc. (FGF) for aggregate cash consideration of C$1.2 billion. The transaction closed on December 10, 2021.

The Weston Foods fresh and frozen bakery businesses comprise a leading North American manufacturer, serving 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™, and Gadoua®.

George Weston Limited is a Canadian public company founded in 1882. The company operates through its three reportable operating segments, Loblaw Companies Limited (Loblaw), Choice Properties Real Estate Investment Trust (Choice Properties), and Weston Foods. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services, and wireless mobile products and services. Choice Properties owns, manages, and develops a high-quality portfolio of commercial retail, industrial, office, and residential properties across Canada. The Weston Foods operating segment includes a leading North American bakery that offers packaged bread and rolls in Canada as well as frozen and artisan bread and rolls, cakes, donuts, pies, biscuits, and alternatives throughout Canada and the United States.

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 seven 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.

Houlihan Lokey served as the financial advisor to George Weston Limited and assisted in negotiating the transaction on its behalf.

This deal represents another successful transaction for Houlihan Lokey in the North American bakery sector following the sales of Dessert Holdings to Bain Capital; the North American business of ARYZTA AG to Lindsay Goldberg; Give & Go to Mondelēz; Venice Bakery to Rich Products; and C.H. Guenther & Son, Inc., to PPC Partners.