Tyson to complete sale of Canadian beef operations

by Editor fleischwirtschaft.com
Tuesday, March 03, 2009

The sale of Lakeside Farm Industries (Brooks, Canada) by Tyson Foods, Inc. (Spingdale, USA) to XL Foods Ltd. is expected to be completed by mid-March, officials from both companies reported.

The transaction, which was first announced in June 2008, is proceeding now that the Canadian Competition Bureau has indicated it will not challenge it.

Tyson said, it intended to continue buying Canadian cattle to supply some of their U.S. beef operations, such as our beef complex in Pasco, Washington.

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.

Lakeside Farm Industries is a diversified agribusiness involved in cattle feeding, slaughtering and processing, as well as retail fertilizer production and farming. Lakeside employs 2,300 people. 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.