JBS eyes Canadian acquisition
18/10/2012
As a result of the deal, JBS’s US division will, with immediate effect, take over the running of XL’s abattoir in Brooks, Alberta, which has a slaughter capacity of 4,000 head of cattle a day.
The Brazilian group has also negotiated the exclusive right to acquire the Brooks plant, as well as abattoirs that XL has in Calgary, Alberta, Omaha, Nebraska and Nampa, Idaho, with a combined capacity of 3,200 head per day. The final components of the deal are a feedyard in Brooks, which has capacity for 70,000 head and a piece of land surrounding the feedyard of 6,600 acres.
JBS said on announcing the deal that if it takes up its option to acquire these assets it will pay XL Foods $50 million in cash and give it JBS shares worth another $50 million.
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