JBS Goes Ahead with XL Foods Canada Purchase10 January 2013
CANADA - JBS subsidiary JBS USA is expected to complete the purchase of XL Food operations in Canada by 14 January.
JBS announced its intention to buy the business that was at the centre of an e.coli scare last year in October 2012.
Under the terms of the agreement, JBS will acquire the beef packing plant in Brooks (Alberta, Canada) with capacity to process 4,000 head of cattle a day, the beef packing plant in Calgary, Alberta, Canada, with capacity to process 1,000 head of cattle a day the feedlot in Brooks, Alberta, Canada, with a one-time capacity to feed 70,000 head of cattle and 6,600 acres of farmland adjacent to the feedlot in Brooks, Alberta, Canada.
The agreement between JBS and XL Foods further permits an exclusive option to purchase the US operations of XL Foods.
JBS is waiting for the regulatory review from US authorities in this case and the US operations will continue to be operated by XL Foods during the option period.
JBS will in not assume any of XL Foods’ debt or liabilities and JBS said it will keep the market informed regarding the ongoing actions related to this agreement.
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