BROOKS, Alberta, Feb. 27, 2009 (GLOBE NEWSWIRE) -- The sale of Lakeside Farm Industries by Tyson Foods, Inc. (NYSE:TSN) to XL Foods Ltd. is expected to be completed by mid-March, officials from both companies reported today. The transaction, which was first announced in June 2008, is proceeding now that the Canadian Competition Bureau has indicated it will not challenge it.
"We're pleased the Competition Bureau has finished its review and we're ready to move forward with the sale," said Leland Tollett, interim president and CEO of Tyson Foods. "As we've previously stated, Lakeside is one of Canada's leading beef processing operations, but it simply no longer fits our company's long-term strategy." Tyson's current international focus is primarily on expanding the company's presence in Asia, Mexico and South America.
"While Tyson will no longer own a beef plant in Canada, we fully intend to continue buying Canadian cattle to supply some of our U.S. beef operations, such as our beef complex in Pasco, Washington," according to Tollett.
The C$105.5 million sale of Lakeside includes C$55.5 million that will be paid at closing. The remaining C$50 million, plus interest, will be paid over a five-year period following closing. XL is also buying cattle, feed, fertilizer and packaging inventories as part of the transaction.
"We're anxious to make the Lakeside part of our company and believe it will complement our other Canadian operations," said Brian Nilsson, co-chief executive officer of XL Foods Inc.
Lakeside Farm Industries, based in Brooks, Alberta, is a diversified agribusiness involved in cattle feeding, slaughtering and processing, as well as retail fertilizer production and farming. Lakeside employs 2,300 people and we appreciate the patience they've shown as we have worked through the details of this change in ownership.
The Lakeside beef plant currently has the capacity to slaughter and process 4,700 cattle per day. The commodity boxed beef produced by the plant is primarily sold to customers in Canada and the U.S.
XL Foods Inc. is the largest Canadian owned and operated beef processor in Canada. It is part of the Nilsson Bros. Group of companies, which is a diverse agri-business that is involved in all facets of beef and cattle production, marketing and processing. XL Foods Inc. operates facilities in Alberta, Saskatchewan, Nebraska and Idaho. For more information, please visit www.xlfoods.com.
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 90 countries. The company has approximately 107,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
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