Brazilian-based company to manage XL Foods processing plant

JBS USA, a subsidiary of one of the world’s largest meat processing companies, has reached an agreement to manage the XL Foods processing plant in Brooks, Alberta.

The deal, signed Wednesday, will also provide JBS USA an exclusive option to purchase XL’s Lakeside beef plant, XL Calgary beef plant and XL’s U.S. beef packing operations. This agreement also includes the option to purchase Lakeside Feedyards, a feedlot and farming operation near Brooks, Alberta.

JBS USA is owned by Brazilian-based JBS S.A. The company processes beef, pork and lamb, with more than 60,000 employees in the U.S. Its products are shipped to more than 60 countries on five continents.

Get breaking National news

Get breaking Canada news delivered to your inbox as it happens so you won't miss a trending story.

Sign up for breaking National newsletter Get Started

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

“This action is another positive step to relicensing the XL Lakeside beef plant in Brooks, Alberta. We welcome the assistance of JBS and their resources.” Brian Nilsson, Co-CEO of XL Foods said in a release issued Wednesday.

The takeover will not change the current E. coli review by the Canadian Food Inspection Agency.

“We still need to have CFIA finish the process they’ve been working on, and there are still steps that need to be taken so, it’s a move in the right direction but, there’s a ways to go yet,” said Alberta’s Agriculture Minister, Verlyn Olson.

The deal is worth $100 million to XL Foods- $50 million in cash and $50 million in JBS stock.

The president of UFCW Local 401, the union that represents the workers at the plant, spoke with Global News Wednesday evening. Doug O’Halloran said he has believed for some time that the plant needed a change in management or ownership.

The XL Foods plant is at the core of the massive meat recall prompted by an E. coli scare that has sickened at least 15 people in four provinces. More than 1,800 XL Foods products have been recalled across Canada along with more than 1.1 million kilograms of beef exported to the U.S. and 20 other countries.

The XL plant in Brooks has the capacity to process 4,000 head of cattle per day. It is one of the largest employers in southern Alberta and one of Canada’s largest beef processors.