Australia: George Weston Foods acquires Abe’s Bagels

George Weston Foods, the food manufacturing subsidiary of Associated British Foods (ABF), has acquired the bagel manufacturer Abe’s Bagels for an undisclosed sum.

The strategic transaction transfers ownership of the brand and its St Johns bakery in East Auckland to George Weston Foods, expanding a bakery stable that already includes Tip Top Bakery, Ploughmans, Abbotts Bakery and Golden Crumpets.

Prior to the sale, Abe’s Bagels was jointly owned by private equity firms Marmont Capital and Altered Capital. Established in 1996, Abe’s Bagels commands a 70% to 75% market share in the bagel sector across both Australia and New Zealand, producing more than 1.2 million bagels weekly for over 3,200 supermarket stockists. The company recently recorded annual revenues of NZ$50 million ($29.7 million), representing a 25% increase over the previous financial year.

George Weston Foods has committed to retaining all 140 Auckland-based manufacturing staff to ensure business continuity. Jesse Newson, CEO of Abe’s Bagels, stated: “While the business has hit its independent ceiling due to the capital-intensive nature of automated bakery innovation, partnering with a massive international family business like George Weston Foods offers the long-term logistical backing required to take the brand’s popular breakfast products mainstream”.

Source: Milling MEA