XL buying Swifts Omaha plant

[grassfarmer]

A further consolidation in the N. American beef processing sector announced today - even less competition amongst cattle buyers in future.

OMAHA (DTN) -- Swift & Company, the world's second-largest processor of fresh beef and pork products, Thursday announced that it has signed a definitive agreement to sell its non-fed cattle business, including its Omaha, Nebraska operating plant and its assets in Nampa, Idaho, to XL Foods Inc., of Alberta, Canada.

Swift & Company President and CEO Sam Rovit said, "We are pleased to announce this agreement with XL Foods, a respected operator in our industry, in a transaction that affords both companies the opportunity to enhance their strategic focus in their respective sectors of the core beef business -- fed-cattle for Swift, non-fed cattle for XL." Rovit added, "We look forward to working with the XL Foods management team to complete the sale process. We are also pleased that our agreement includes the expectation that XL will honor all commitments made to the existing production workforce and management team in Omaha, a critical requirement for the sale negotiation from Swift's perspective."

Swift & Company intends to reinvest the sale proceeds back into its existing core lines of business. Additional transaction terms were not disclosed.

[cowman]

Now that is strange! Maybe Nillson Bros. know something that we don't? Maybe there is light at the end of the tunnel on this cow thing....although the BC mad cow might throw a monkey wrench in the whole thing?