The assets being sold are part of Weston Foods Inc., Dunedin's principal U.S. operating subsidiary, and include the Arnold, Brownberry, Entenmann's, Freihofer, Stroehmann and Thomas' brand names. For the 52 weeks ended October 4, 2008, the business being sold contributed $2.2 billion of sales and $255 million of EBITDA to Weston's consolidated results. Exclusive of restructuring charges, fair value adjustments on commodity derivatives, and adjustments of insurance reserves taken in the fourth quarter of 2007 and the third quarter of 2008 as a result of favorable workers compensation experience, EBITDA for the 52 weeks ended October 4, 2008, was approximately $275 million. The company will report a significant gain on disposal reflecting the value creation since the Best Foods Baking acquisition in 2001.
Dunedin will retain its other U.S. baking interests -- Interbake Foods, which produces biscuits, cookies, cones and wafers, and Maplehurst Bakeries, which produces and distributes frozen bakery products.