JBS to sell Alberta feedlot
July 19, 2017
Meat packing giant JBS is front and center in the news world 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."
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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.