January 10, 2013
JBS to complete partial acquisition of XL Foods in Canada
JBS SA announced that the completion of the purchase of certain Canadian operations of XL Foods on January 14, 2013 was anticipated by Canadian subsidiary of JBS USA.
Under the terms of the agreement, JBS will acquire the following Canadian assets: one beef packing plant in Brooks (Alberta, Canada) with capacity to process 4,000 head of cattle per day; one beef packing plant in Calgary (Alberta, Canada) with capacity to process 1,000 head of cattle per day; one 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 awaits regulatory review from US authorities in this case. The US operations will continue to be operated by XL Foods during the option period.
JBS will in no case assume any of XL Foods' debt or liabilities.
