The Canadian Cattlemen’s Association (CCA) is pleased to learn that XL Foods Inc. has reached an agreement for JBS USA to assume the management of the beef harvesting and processing operations at Brooks, Alberta, effective immediately. Operations of the Brooks facility have been suspended since September 27, 2012 while corrective actions have been undertaken following a beef recall.
“JBS has a global reputation as a leader in the beef business,” said CCA President Martin Unrau. “Their sophisticated knowledge of modern beef harvesting management as well as extensive world-wide beef marketing network will be a valuable asset for the entire Canadian beef sector.”
JBS USA is a leading animal protein processor in the U.S. and Australia and a wholly owned subsidiary of Brazil-based JBS S.A., the world’s largest protein company. According to the company, the agreement also provides JBS USA an exclusive option to purchase the Canadian and U.S. operations of XL Foods. JBS USA holds an exclusive option to purchase XL properties including: the Lakeside beef packing plant; a beef packing plant in Calgary, AB; a feedlot in Brooks, AB, and the adjacent farmland acreage; a beef packing plant in Omaha, Neb.; and a beef packing plant in Nampa, Idaho. Upon exercising the exclusive option to purchase the above assets, JBS USA agrees to pay USD $50 million in cash and USD $50 million in JBS S.A. shares. Under no scenario will JBS USA assume any of XL Foods' debt or liabilities.