Tyson to sell Canadian beef operation to XL foods for C$107M
SAN FRANCISCO, Jun 26, 2008 (Thomson Financial via COMTEX) -- By Staff Reporter
Company: Tyson Foods, Inc. (TSN)
Tyson Foods Inc. has signed a letter of intent to sell the packing, feedyard and fertilizer assets of Lakeside Farm Industries Ltd and its subsidiary Lakeside Packers to XL Foods Inc. for C$107 million, the companies said late Wednesday.
The deal includes C$57 million to be paid at closing, with the remaining C$50 million, plus interest, to be paid over a five-year period.
Springdale, Ark.-based Tyson would retain the finished product inventory, accounts receivables and accounts payables of the Lakeside operations as of the closing date.
Lakeside currently employs 2,300 people.
Tyson CEO Richard Bond said Lakeside no longer fits the company's long-term strategy, which is focused primarily in Asia, Mexico and South America.
The companies expect the sale to close by the end of September.
XL is part of the Nilsson Bros. Group, a Canadian cattle feeding and marketing company
Shares of Tyson closed at $15. Gabriel Madway gm
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
MMMM
Copyright (C) 2008 Xinhua Financial News. All rights reserved
News Provided by COMTEX
Company: Tyson Foods, Inc. (TSN)
Related terms: arkansas, asia, beef, bond, canada, ceo, fertilizer, marketing, mexico, south america
