Animal processor JBS USA has completed the purchase of two U.S. packing plants formerly owned by XL Foods.
In an April 4 news release, JBS confirmed purchase of a beef packing plant in Omaha, Nebraska, and another plant in Nampa, Idaho. The purchase was finalized April 8.
Brian Perillat of Canfax said the deal will not have much effect on the Canadian industry or cattle shipping, but “it puts an end to the Nilsson era in the packing sector.”
Nilsson Brothers owned XL Foods, including the large packing plant in Brooks, Alta., that was the source of E. coli contamination in beef last fall.
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Temporary closure of the plant by the Canadian Food Inspection Agency, and losses resulting from that, prompted sale of the plant to JBS Canada in January.
JBS also had the option of buying XL’s U.S. assets, which it has now done. The purchase completes the agreement between XL and JBS that was originally announced Oct. 17.
The plant in Nampa, with a capacity of 1,100 head per day, has been idle for months and is not likely to reopen. The plant in Omaha, also with a capacity of 1,100 head, handles mostly cows.
JBS is the largest animal processing company in the world. Its American and Canadian operations are subsidiaries of Brazil-based JBS SA.
