JBS has announced a deal to sell Lakeside Feeders at Brooks, Alberta back to its previous owner, Nilsson Bros.
JBS Food Canada Inc, the Canadian subsidiary of the scandal-plagued Brazilian meat industry giant, announced on Friday that it has an agreement to sell its 75,000 head feed yard and adjacent farmland to MCF Holdings, a subsidiary of Alberta-based Nilsson Bros. Inc., for C$50 million.
The terms of the agreement would see Nilsson Bros. continue to supply cattle to the JBS Food Canada processing plant at Brooks.
JBS bought the former XL Foods Lakeside packing plant and feedlot from Nilsson Bros. for $100 million in 2013.
Lakeside Feeders was operated by JBS’ Five Rivers Cattle Feeding business, alongside operations in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho.
With regulatory review and approval still pending, the companies don’t say when they expect the deal will close. MCF says it anticipates offering employment to current employees upon closing.
The sale comes as JBS aims to divest $1.8 billion in assets after a massive corruption scandal and fines for bribery in Brazil.