Another one goes south.

George Weston sells U.S. bakery to Grupo Bimbo
Financial Post
Published: Wednesday, December 10, 2008


Change font size
Print this story
E-Mail this story
Share This Story


Story tools presented by

Mike Cassese/ReutersGalen G. Weston Sr., president of George Weston Ltd., which has agreed to sell the fresh bread and baked goods division of its Dunedin Holdings unit to Grupo Bimbo for a total of US$2.5-billion.
George Weston Ltd. said it has agreed to sell the fresh bread and baked goods division of its Dunedin Holdings unit to Grupo Bimbo for a total of US$2.5-billion.

The unit includes such brands as Entenmann's, Stroehmann and Thomas' and contributed US$2.2-billion in revenue to Weston over the 52-weeks ending Oct. 4.

Weston said it will take a significant gain on the sale of the business, which it bought as part of the $2.7-billion Bestfoods Baking acquisition in 2001.

The company says it will still retain its other U.S. baking interests, Interbake Foods and Maplehurst Bakeries, which produces and distributes frozen bakery products.

The company did not say what it would do with the cash from the sale, aside from saying "We intend to use that cash wisely and at the appropriate time."

It's not the first time Mexico's Grupo Bimbo has bought assets from Weston. In 2002, Weston sold its Oroweat bakery division to Grupo Bimbo S.A. for US$610-million.

CIBC World Markets acted as financial advisor to Dunedin and Weston.

__________________