BROOKS, Alberta – Tyson Foods Inc. said Thursday that it has reached a preliminary agreement to sell Lakeside Farm Industries Ltd. and its subsidiary Lakeside Packers to Canadian beef processor XL Foods Inc.

The company signed a letter of intent on Thursday that will sell the packing, feedyard and fertilizer assets of Lakeside in a deal worth approximately $105 million. XL Foods and Tyson expect to complete the deal by the end of September.

“Lakeside is one of the premier beef processing operations in Canada and has operated successfully for many years,” said Richard L. Bond, Tyson president and CEO. “However, Lakeside no longer fits the long-term strategy of our company, as our current international strategy is focused primarily in Asia, Mexico and South America.”

XL Foods said it plans to continue operating the Lakeside facility after the sale is completed.

“We believe the Lakeside plant and cattle feeding operation will complement our other beef operations in Alberta and Saskatchewan,” said Brian Nilsson, co-CEO of XL Foods Inc. “In addition, it will help strengthen our ability to meet the needs of our North American customer base.”

XL Foods is part of the Nilsson Bros. Group, a Canadian cattle feeding and marketing company. 

Source: Tyson Foods Inc.