JBS to sell feedlot in Alberta
July 20, 2017
Meat packing giant JBS is making news again, with the sale of a major cattle feedlot in southern Alberta.
JBS Food Canada Inc. announced July 14 that is has reached an agreement to sell Lakeside Feeders, its beef cattle feed yard and adjacent farmland in Brooks, Alberta, Canada, to MCF Holdings Ltd. ("MCF"), a subsidiary of Nilsson Bros. Inc., a livestock-based agricultural business in Alberta, for $50 million CAD.
Nilsson Bros. Inc. was the feedlot's previous owner. JBS bought the plant in 2013 for $100 million.
Under terms of the agreement, MCF will continue to supply cattle to the JBS Food Canada beef processing facility in Brooks.
MCF said in JBS USA's release that the company plans to offer employment to the feedlot's and farm's employees upon closing of the deal.
While a date of completion was not mentioned, the two companies announced that the deal is "subject to regulatory review and approval."
Recommended Stories For You
According to reports, the feedlot has capacity for 75,000 head of cattle, and has been managed as part of JBS's Five Rivers Cattle Feeding unit, which also runs feedlots in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho.
JBS has announced plans to sell other assets following the meat scandal that has left controlling shareholders with a $4.1 billion fine.
A Brazilian court blocked sales of other JBS meat packing assets in Argentina, Paraguay and Uruguay, but an appeals court overturned the ruling on July 13, according to reports.
A Brazilian federal judge also dismissed a lawsuit against JBS controlling shareholder, Joesley Batista, that temporarily froze $246 million in assets. The funds were related to alleged gains in the foreign currency market, according to Meatingplace.com. After the news of government bribery broke, the U.S. dollar appreciated 8.06 percent against the Brazilian currency, the highest appreciation in a single day since 1999.
The judge ruled that the damages to the treasury suffered by the scandal had been resolved, for the most part, in part because of the leniency deal signed by J&F, JBS' controlling company, to pay back damages. The leniency deal was announced the day after the judge issued the injunction that blocked Joesley Batista's assets.
According to news reports, an investigation of the scandal is still in the works, with Brazil's securities regulator looking in to transactions by JBS controllers.