JBS reaches deal to sell Canada feedyard, farmland
July 14, 2017
Not even a month after opting to sell its U.S. cattle feeding operations, JBS will let go of its Canadian cattle feeding business as well.
JBS Food Canada, Inc., announced in a news release Friday it will sell Lakeside Feeders, its beef cattle feed yard and adjacent farmland in Brooks, Alberta, Canada, to MCF Holdings Ltd., for $50 million in Canadian currency, the equivalent of $39.5 million in U.S. dollars. MCF Holdings is a subsidiary of Nilsson Bros, Inc., a livestock-based agricultural business in Alberta, the release stated.
Last month, JBS, the largest feeding operation in the world, let alone Colorado, opted to unload Five Rivers Cattle Feeding, which has the feeding capacity of 980,000 animals in six states, including Colorado. The Canada feed operations have the capacity of 75,000 head.
That was reportedly part of a $1.8 billion divestment plan to cut the company's dairy, poultry and cattle feeding operations after parent company JBS SA was fine $3.1 billion in Brazil to settle a bribery scandal.
The Canadian operations of JBS are lumped in with JBS USA beef in the company's financial reporting segments.
JBS USA filed for its initial public offering in December 2016 to raise $1 billion. That IPO is set to go through this year. The move to sell off its U.S. cattle feeding operations has been seen by some as a way to put JBS USA's portfolio in a better position for that IPO.
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According to Friday's release, the buyer will continue to supply cattle to the JBS Food Canada beef processing facility in Brooks. The release states MCF will opt to keep the current feed yard and farm employees in the deal.