BROOKS, Alberta, March 13, 2009 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) has completed the sale of its Lakeside operations in Canada, to XL Foods Inc., officials from both companies reported today. The transfer of ownership takes effect Saturday, March 14.
Lakeside, based in Brooks, Alberta, is a diversified agribusiness involved in cattle feeding, slaughtering and processing, as well as retail fertilizer production and farming. It has been part of Tyson Foods since 2001, when Tyson bought IBP, inc. However, in June 2008, Tyson officials announced plans to sell the business to XL Foods, indicating Lakeside no longer fit Tyson's long-term, international business strategy.
"We extend our appreciation to the employees of Lakeside for their hard work over the years and for their patience as we sorted through the details of the ownership change," said Leland Tollett, interim president and chief executive officer of Tyson Foods. "We're also grateful to the community of Brooks and the province of Alberta for their support of Lakeside and the Canadian beef industry."
While Tyson will no longer own a beef plant in Canada, the company plans to continue buying Canadian cattle to supply some of its U.S. beef operations.
The C$105.5 million sale of Lakeside includes C$55.5 million in cash, which was paid today. The remaining C$50 million, plus interest, will be paid over a five-year period following today's closing. XL also purchased cattle, feed, fertilizer and packaging inventories as part of the transaction.
Lakeside currently employs 2,300 people. The beef operation 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 http://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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