One of Canada's largest beef-processing plants in Brooks, Alta., will be sold to XL Foods in a deal worth about $107 million.
Tyson Foods, based in Springdale, Ark., said Wednesday it's signed a letter of intent to sell the packing, feedyard and fertilizer assets of Lakeside Farm Industries and its subsidiary, Lakeside Packers, to Canadian company XL Foods.
The transaction is expected to be finished by September.
Tyson's president, Richard L. Bond, said the sale will allow the company to focus on its international markets in Asia, Mexico and South America.
In 2005, a bitter three-week labour dispute over wages and workplace respect was marked by violent confrontations between strikers and people crossing the picket line.
The conflict ended when the union and company came to an agreement on the workers' first contract.
"We believe the Lakeside plant and cattle feeding operation will complement our other beef operations in Alberta and Saskatchewan," said Brian Nilsson, co-chief executive officer of XL Foods Inc. and Nilsson Bros. Inc. in a news release.
"We intend to make the transition of ownership as smooth as possible," he added. "At the appropriate time, this will include informational meetings with members of the Lakeside staff."
Lakeside employs 2,300 workers and 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 United States.
XL Foods already owns packing plants in Edmonton, Calgary, Moose Jaw, Sask., Omaha, Neb. and Nampa, Idaho.
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