JBS USA announced it will purchase two beef plants from XL Foods Thursday with the deal expected to close on Monday.
JBS exercised its option to buy the two beef plants, located in Omaha, Neb. and Nampa, Idaho, as part of the company’s agreement with XL Foods. JBS obtained the option to purchase XL assets when it provided management assistance after XL Foods issued the largest beef recall in Canadian history stemming from an E. Coli outbreak in September, 2012.
The Omaha plant can process 1,100 head of cattle per day, the Idaho plant is currently closed and JBS stated they do not plan to reopen the facility. The Associated Press reports the agreement in October allowed JBS to purchase two U.S. plants; two beef packing plants and a feedlot in Canada; and adjacent farmland that supports the feedlot operation from XL Foods for $50 million in cash and another $50 million in JBS shares.
The Denver Business Journal reports JBS previously purchased the two XL Foods packing plants and feedlot in Alberta, Canada in January.