Tyson Foods Closes Sale of Lakeside to XL Foods
The C$105.5 million sale of Lakeside includes C$55.5 million in cash, which was paid. The remaining C$50 million, plus interest, will be paid over a five-year period following the date closing. XL also purchased cattle, feed, fertilizer and packaging inventories as part of the transaction.
16/03/09 Tyson Foods, Inc. has completed the sale of its Lakeside operations in Canada, to XL Foods Inc., officials from both companies reported. 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. The remaining C$50 million, plus interest, will be paid over a five-year period following the date 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.
