TORONTO, Oct. 22 /CNW/ - George Weston Limited ("Weston") (TSX: WN)
announced today 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.
Mr. Weston noted that "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."
The completion of the transaction is subject to normal closing conditions
including the approval of the Competition Bureau. Subject to the satisfaction
of the closing conditions, the parties expect to close the transaction on or
about November 24, 2008.
George Weston Limited 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 Companies
Limited. 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
This news release includes forward-looking statements, such as the
Corporation's beliefs and expectations that the sale of the Neilson Dairy
assets will close in the fourth quarter. These statements are based on certain
assumptions and reflect the Corporation's current expectations. No assurance
can be given that the sale will be completed within the time period specified
in this release, or at all. All forward-looking statements in this news
release are subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current expectations. Some
of the factors that could cause actual results to differ include the need to
obtain regulatory approvals and satisfy other conditions of closing.
Additional factors are discussed in the Corporation's materials filed with the
securities regulatory authorities in Canada from time to time. The Corporation
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
For further information:
For further information: Geoffrey Wilson, Senior Vice President, (416)