
George Weston Limited 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.