JBS to Acquire 2 US Slaughterhouses
Brazilian meatpacking giant JBS SA said Thursday it intends to acquire two slaughterhouses in the U.S. from Canada's XL Foods, completing an agreement signed in October after the latter company suffered an E. Coli contamination incident.
JBS's U.S. subsidiary plans to close the acquisition of a slaughterhouse in Omaha, Neb., and another in Nampa, Idaho, on April 8, the company said in a filing. Each plant has capacity to process 1,100 head of cattle per day, though the Idaho slaughterhouse is currently inactive and won't be immediately reopened.
JBS in October reached a deal to manage XL Foods' biggest slaughterhouse, in Brooks, Alberta, after U.S. and Canadian authorities detected E. Coli in beef produced and exported by the company.
The agreement granted JBS an option to purchase additional assets in the U.S. and Canada from XL Foods for $100 million in cash and stock, without assuming any of the company's debt. JBS acquired the Canadian operations from XL Foods in January.
"The announcement today completes the agreement between JBS and XL Foods," JBS said Thursday. "JBS informs that it will not assume, under any circumstance, any debts or liabilities from XL Foods."
© 2014 Rural Radio Network. All rights reserved. Republishing, rebroadcasting, rewriting, redistributing prohibited. Copyright Information