Western Canadian Beef Packers Inc. (WCB) of Moose Jaw has been purchased by XL Foods Inc. of Calgary, Alberta.

"We are pleased to conclude this sale with XL Foods," Crown Investments Corporation Minister John Nilson said. "We have been trying to find a strategic private sector buyer for the company ever since CIC took control of WCB in September of 1998. XL Foods is a strong player in the beef industry and we are pleased to welcome the company to Saskatchewan."

"XL Foods is proud to join the Moose Jaw and Saskatchewan business communities and to continue to provide Saskatchewan producers with a competitive market for their cattle," XL Foods Inc spokesperson Lee Nilsson said.

XL Foods has purchased the Moose Jaw company for $1.868 million. It will also assume certain liabilities of between $6 million and $7 million. CIC will provide XL with financing in the form of a $2.368 million secured loan to be repaid over 10 years.

"We believe that this deal is in everyone's best interests," Minister Nilson said. "Our goals were to keep the company in business, to keep it in Moose Jaw and to prevent further financial losses for the Province. This is a very important business for the people of Moose Jaw, for our provincial economy and for cattle producers in Saskatchewan."

The sale is effective immediately. WCB's slaughter and processing plants in Moose Jaw will be amalgamated into XL Foods and will assume the name, XL Foods Inc.

Under the name of Western Canadian Beef Packers Inc., the Moose Jaw slaughter facility began operations in 1991, while the boxed beef plant opened in 1996. The company is the only federally inspected beef slaughter and processing facility in Saskatchewan, slaughtering about 180,000 animals a year. The two plants have approximately 264 employees.

Karen Schmidt
A/Executive Director, Communications
Crown Investments Corporation
Regina
Phone: (306) 787-5889

Lee Nilsson
XL Foods Inc.
Calgary, Alberta
Phone: (403) 258-3233