Calgary, Alberta - XL Foods Ltd. announced that it has entered into a purchase and sale agreement to sell its core beef business to Nilsson Bros. Inc. of Edmonton. The agreement calls for the purchase of the three core beef facilities: slaughter, fabrication and the Lethbridge Hide Plant. Also, the XL Dorothy Ranch, the name “XL” and the “Original Alberta Beef” trademark are included. All employees, excepting certain key employees of XL Foods Ltd., are included in the transaction.
The purchase price is in the range of $24 million prior to adjustments and payment of outstanding debt. The transaction, is subject to shareholder approval, is scheduled to close early in the new year and will place the Corporation in a position with capital, to pursue new opportunities. XL Foods Ltd. has sought a solution to further enhance shareholder value over the last six months in the face of a difficult beef market. This decision enables the Corporation to crystallize values for its beef business. It provides an Alberta solution with a proven company committed to further develop the brands and base business.
Nilsson Bros. Inc. are well known in the procurement aspects of the beef industry and over the last few years have successfully entered the processing side of the business with the purchase of Edmonton Meats. The purchase of the XL Foods Ltd. assets is a natural extension in their growth strategy. “ We are pleased in all respects with this transaction. It meets the objectives and goals of all constituents and presents them with a strong future,” says XL Foods Ltd. CEO James Pattillo. The Toronto Stock Exchange has neither approved nor disapproved the contents of this release. For further Information contact Jim Pattillo at (403) 212-1507 or Brian Nilsson at (403) 474-2471.
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