JBS confirms acquisition of XL Foods assets in the USA
JBS, the world's largest animal protein processor, confirmed on Thursday, April 4, that it plans to complete the acquisition of XL Foods assets in the United States. In a statement filed with Brazil's securities and exchange commission (CVM), the Brazilian company said that the deal will go through on Monday, April 8. JBS will take on two slaughterhouses, in the states of Nebraska and Idaho. Each one has a capacity to slaughter 1,100 head of cattle per day.
JBS says the Idaho unit is inactive and, for now, there is no interest in reopening it. The supply of beef cattle in the US remains very limited, pressuring margins for slaughterhouses.
The acquisition XL Foods’ assets was announced by JBS in October last year, and included assets in Canada and the USA. In January this year the acquisition of the Canadian operations was confirmed by JBS, while the purchase of XL Foods assets in the US depended on authorization by the US authorities. Under the agreement, JBS will not take on XL Foods' debts.
Information provided by Valor Econômico