George Weston Ltd. has announced that its subsidiary, Weston Foods (Canada
), has agreed to sell its Neilson Dairy business to Saputo Inc. for gross proceeds of $465 million. Weston expects that its after-tax cash proceeds from the sale will be approximately $390 million.
“This is an excellent transaction for Weston and its shareholders and allows Neilson Dairy to continue to grow with Saputo, Canada
’s largest dairy processor,” Weston stated.
The completion of the transaction is subject to normal closing conditions, including the approval of Canada’s Competition Bureau. Subject to the satisfaction of the closing conditions, the parties expect to close the transaction on or about Nov. 24.
George Weston Ltd. is a Canadian public company founded in 1882 and through its operating subsidiaries constitutes one of North America’s largest food processing and distribution groups. Weston has two reportable operating segments: Weston Foods and Loblaw, which is operated by Loblaw Cos. Ltd. The Weston Foods operating segment is primarily engaged in the baking industry within North America. Loblaw is Canada's largest food distributor and a leading provider of general merchandise, drugstore and financial products and services.