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Viterra Inc. and XL Foods Inc.: Viterra Strengthens Agri-Products Retail Network: Acquires Lakeside Fertilizer

^{Published on 2009-09-25 10:56:31 - Market Wire}
 

CALGARY, ALBERTA--(Marketwire - Sept. 25, 2009) - Viterra Inc. (TSX:VT) (ASX:VTA) and XL Foods Inc. are pleased to announce they have entered into an agreement in which Viterra will acquire the assets of Lakeside Fertilizer (Lakeside), a division of XL Foods and southern Alberta's largest independent retailer of fertilizer and agricultural chemicals.

The transaction, which closed today, includes six retail outlets in Bow Island, Brooks, Claresholm, Medicine Hat, Taber and Vauxhall, AB. Rabobank International acted as exclusive financial advisor to XL Foods.

"This acquisition allows us to further leverage our logistics and distribution network, ensuring that our customers in southern Alberta have the right products at the right time," said Doug Wonnacott, Viterra's Senior Vice-President, Agri-products. "It is also consistent with our overall strategy to optimize our retail footprint in Western Canada and increase our market share."

Strategically located in a prime growing region of Alberta, the sites will allow Viterra to sell inputs for traditional crops, as well as high input specialty crops such as sugar beets and potatoes.

Customers will have access to a full range of agri-products including Viterra's exclusive line-up of proprietary seed, private label crop protection products, along with a variety of custom services.

"We would like to thank the employees, customers and suppliers that have supported the Lakeside Fertilizer business over the years," said Brian Nilsson, Co-CEO of XL Foods Inc.

Wonnacott added that Lakeside employees, as part of the Viterra team, will continue to provide area customers with expert advice and quality service.

The acquisition will increase Viterra's total number of retail sites to 259 across Western Canada.

About Viterra

Viterra Inc. is a global food ingredients agribusiness headquartered in Canada. The Company has extensive operations and distribution capabilities across Western Canada, as well as in Australia and New Zealand, with Adelaide, Australia being Viterra's base for its Southeast Asian operations. Viterra also has offices and operations in the United States, Japan, Singapore, China, Switzerland, and a joint venture in Ukraine. The Company is diversified into sales and services of crop inputs and equipment, grain handling and marketing, livestock feed, food and malt processing and financial products. These operations are complemented by value-added businesses and strategic alliances, which allow Viterra to leverage its pivotal position between growers and destination customers. The Company's common shares are listed on the TSX under the symbol VT. In Australia, Viterra's Chess Depositary Interests (CDIs) are traded on the Australian Securities Exchange (ASX) under the symbol VTA.

About XL Foods

XL Foods Inc. is the largest Canadian owned and operated beef processor in Canada. It is part of the Nilsson Bros. Group of companies, which are a diverse agri-business that is involved in all facets of beef and cattle production, marketing and processing. XL Foods Inc. operates facilities in Alberta, Saskatchewan, Nebraska and Idaho.