JBS Acquires XL Foods’ Canadian Operations
GREELEY, Colo.—JBS USA, a wholly owned subsidiary of Brazil-based JBS S.A., announced its Canadian subsidiary, JBS Food Canada, Inc., will finalize the purchase of certain Canadian operations of XL Foods effective Jan. 14, 2013.
Upon closing, JBS Food Canada will assume ownership of the XL Lakeside beef processing plant in Brooks, Alberta, Canada, which JBS has managed since the plant resumed operations on Oct. 29, 2012, and additional assets in Canada. The Brooks plant, one of Canada's largest beef processing facilities, has the capacity to process 4,000 head of cattle per day and is one of the largest employers in southern Alberta.
The agreement between JBS and XL Foods, originally announced Oct. 17, 2012, also provides JBS USA an exclusive option to purchase the U.S. operations of XL Foods. JBS awaits regulatory review from U.S. authorities prior to exercising this option.
"Today, JBS officially enters the Canadian beef market through our acquisition of the XL Lakeside beef packing plant," said Bill Rupp, president and COO of JBS USA Beef. "After several months of careful consideration of the option and nearly three months of successfully managing the Lakeside facility, we have determined that the Canadian operations will serve as an important asset to our strategic global beef production model. We look forward to partnering with Canadian producers to deliver quality Canadian beef to customers around the world."
Under the terms of the agreement, JBS Food Canada will acquire XL properties in Canada, including the Lakeside beef packing plant; a beef packing plant in Calgary, a feedlot in Brooks, Alberta; and the adjacent farmland acreage supporting the feedlot operation. Under no scenario will JBS Food Canada assume any of XL Foods' debt or liabilities.