A subsidiary of a Brazilian-based company that calls itself a leading animal protein processor in the U.S. and Australia has taken over management of XL Foods, the Alberta-based plant at the heart of the recent beef recall.
In a news release issued from its headquarters in Greeley, Colorado, JBS USA said the agreement also provides the company an exclusive option to buy the Canadian and U.S. operations of XL Foods.
"We know full well the commitment it takes to manage world-class operations that produce safe and nutritious products for consumers around the world," said Bill Rupp, president and chief operating officer of JBS USA.
"We believe our experienced team will prove an invaluable asset in the management of XL Lakeside and we look forward to exploring our options to purchase XL assets in the near future."
Brian Nilsson, co-CEO of XL Foods, issued a brief news release addressing the announcement.
"This action is another positive step to relicensing the XL Lakeside beef plant," he said. "We welcome the assistance of JBS and their resources."
JBS USA is a wholly owned subsidiary of Brazil-based JBS S.A.
"Upon exercising the exclusive option to purchase the above assets, JBS USA agrees to pay $50 million in cash and $50 million in JBS S.A. shares," said the news release.
"Under no scenario will JBS USA assume any of XL Foods' debt or liabilities.
It was an unexpected development in a dramatic saga that began last month when the plant - one of Canada's largest beef processors - was closed over E. coli contamination.
