JBS USA to manage XL Foods’ plant with option to purchase

October 18, 2012

According to Reuters, JBS USA said it signed an agreement with privately held beef processor XL Foods to manage its Brooks, Alberta, Canada operations, which has been idle since Sept. 27 over E. coli contamination. Under the terms of the agreement, JBS USA, a subsidiary of Brazil-based JBS S.A., also has an option to purchase the Canadian and U.S. operations of XL Foods for $50 million in cash and $50 million in JBS S.A. shares.

JBS USA said it will manage the XL plant in Brooks and will not assume debt or liabilities of XL Foods, one of the largest beef producers in Canada. XL Foods, responsible for one of the biggest beef recalls in Canadian history, said on Oct. 14 it was recalling 800 workers at the plant just a day after a mass layoff of 2,000 had jeopardized an effort to resume production.

Reuters article