Tyson to Complete Sale of Beef Plant
by March 9, 2009 12:00 am 54 views
Tyson Foods’ sale of the Canadian beef plant Lakeside Farm Industries to XL Foods Inc. is moving forward, following a review by the Canadian Competition Bureau.
“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 is focusing its international expansion efforts on its existing presence in Asia, Mexico and South America.
The $105.5 million sale of Lakeside, expected to close in mid-March, includes $55.5 million that will be paid at closing. The remaining $50 million, plus interest, will be paid over a five-year period following closing.
XL Foods 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.