UPDATE 2-George Weston buys ACE Bakery for C$110 million

* Purchase expands family of bakery brands

* Shares fell 2 percent

(Adds details, analyst note, updates shares)

TORONTO, Nov 1 (BestGrowthStock) – Canada’s George Weston (WN.TO: )
is buying Toronto-based ACE Bakery for C$110 million ($108.4
million) to complement its existing baked goods brands, the
parent company of Loblaw (L.TO: ) said on Monday.

Canada’s largest food processor and distributor said its
fresh bakery subsidiary, Weston Foods, bought the manufacturer
of artisan and European-style breads to expand its family of
bakery brands.

Shares of George Weston, the maker of Wonder bread and Girl
Scout cookies, finished down C$1.63, or 2 percent, at C$80.32
on the Toronto Stock Exchange on Monday.

Weston, which has a cash balance of about C$3.5 billion,
bought U.S. manufacturer Keystone Bakeries at the end of August
for $185 million.

“Our sense is that investors are still anticipating Weston
will spend a significant proportion of its cash balance on a
larger acquisition and may find the modest scope of these
transactions to be disappointing,” wrote BMO analyst Peter
Sklar in a research note on Monday.

($1=$1.01 Canadian)
(Reporting by Solarina Ho; editing by Peter Galloway)

UPDATE 2-George Weston buys ACE Bakery for C$110 million