JBS USA Signs Agreement With XL Foods
GREELEY, Colo., Oct 17, 2012 (Menafn - GlobeNewswire via COMTEX) --JBS USA, a leading animal protein processor in the U.S. and Australia and a wholly owned subsidiary of Brazil-based JBS S.A., today announced an agreement with XL Foods to manage one of the company's Canadian operations. The agreement also provides JBS USA an exclusive option to purchase the Canadian and U.S. operations of XL Foods. XL will continue to manage its other Canadian and U.S. operations during the option period.
Effective immediately, JBS USA will manage XL Lakeside, a beef processing plant in Brooks, Alberta, Canada, with the capacity to process 4,000 head of cattle per day. XL Lakeside is one of the largest employers in southern Alberta and one of Canada's largest beef processors.
"Today, JBS USA expands its North American operations through an agreement with Canada's XL Foods, one of Canada's largest producers of beef and related products," stated Bill Rupp, President and COO, JBS USA Beef. "As the world's largest producer of animal protein, we know full well the commitment it takes to manage world-class operations that produce safe and nutritious products for consumers around the world to enjoy. 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."
As part of the agreement, JBS USA holds an exclusive option to purchase XL properties including: the Lakeside beef packing plant; a beef packing plant in Calgary, Alberta; a feedlot in Brooks, Alberta, and the adjacent farmland acreage; a beef packing plant in Omaha, Neb.; and a beef packing plant in Nampa, Idaho. Upon exercising the exclusive option to purchase the above assets, JBS USA agrees to pay USD 50 million in cash and USD 50 million in JBS S.A. shares. Under no scenario will JBS USA assume any of XL Foods' debt or liabilities.
About JBS USA
JBS USA, an indirect, wholly owned subsidiary of JBS S.A., the world's largest protein company, is a leading processor of beef, pork and lamb, with more than 60,000 employees in the U.S. JBS USA processes, prepares, packages and delivers fresh, further processed and value-added beef and pork products for sale to customers in more than 60 countries on five continents. JBS USA is also a majority shareholder of Pilgrim's Pride Corporation PPC, the second largest poultry company in the U.S.
In the U.S., Mexico and Puerto Rico, JBS USA and Pilgrim's Pride conduct operations through eight beef processing plants, three pork processing plants, 31 poultry processing plants, 31 poultry hatcheries, one lamb processing plant, one value-added beef and pork facility, one hide tannery, 30 distribution centers, one grease producing facility, and 12 feedlots operated by JBS Five Rivers Cattle Feeding.
For more information, visit www.jbssa.com.
About JBS S.A.
JBS S.A. is the world's largest protein company with 301 production facilities worldwide and more than 135,000 employees. JBS S.A. processes beef, pork, lamb and poultry in addition to processing leather and other animal by-products. JBS S.A. processes, prepares, packages and delivers fresh, further-processed and value-added beef, pork, lamb and poultry products in more than 151 countries on five continents.
In South America, JBS S.A. conducts its operations through 108 beef processing, canning, distribution centers and other facilities, including 37 processing plants in Brazil, 5 processing plants in Argentina, 2 processing plants in Paraguay, 1 processing plant in Uruguay, and 11 distribution centers and 5 feedlots in Brazil.
For more information, visit www.jbs.com.br.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: JBS USA
CONTACT: Cameron Bruett
JBS USA
Corporate Communications
O: 1 970.506.7801
C: 1 202.445.6168
cameron.bruett@jbssa.com
Jeremiah O'Callaghan
JBS S.A.
Investor Relations Officer
O: 55 11 3144.4667
jerry@jbs.com.br
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
