Tyson sell Canadian beef operations
4 March 2009Tyson Foods' proposed sale of their Canadian beef operations to XL Foods Ltd is expected to be completed by mid-March, according to Meatingplace.com. First announced in June 2008, the deal is moving ahead since the Canadian Competition Bureau decided not to challenge it.
‘As we've previously stated, Lakeside (Farm Industries) is one of Canada's leading beef processing operations, but it simply no longer fits our company's long-term strategy', Leland Tollett, interim president and CEO of Tyson Foods, said in a joint press release.
He noted Tyson's current international strategy focuses on expansion in Asia, Mexico and South America. Tollett added that Tyson will continue to buy Canadian cattle to supply some of Tyson's US beef plants, including that of Pasco, Wash.
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 are 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.
