JBS Food Canada to sell Lakeside feed yard to MCF
JBS Food Canada has signed a C$50m ($39.5m) agreement to sell its Lakeside Feeders beef cattle feed yard and the adjacent farmland in Brooks, Alberta, to MCF Holdings (MCF).
MCF is a subsidiary of Alberta-based company Nilsson Bros, which owns a diverse group of agricultural businesses that operate across all the Western provinces.
In 2013, JBS acquired the former XL Foods Lakeside packing plant and feedlot from Nilsson Bros.
The company intends to retain employees working at the feed yard and farm upon closing of the transaction, which is subject to regulatory review and approval.
Under the terms of the deal, MCF has agreed to supply cattle to the JBS Food Canada beef processing facility in Brooks.
After the deal is completed, JBS Food Canada will retain one beef packing plant in Brooks, as well as its corporate headquarters in Calgary.
Established in 2013, the company is involved in the feeding, harvesting and processing of cattle.
Operated by JBS’ Five Rivers Cattle Feeding business, Lakeside Feeders has a capacity to hold 75,000 cows sourced from British Columbia, Alberta, Saskatchewan and Manitoba.
The latest sale comes after JBS Food Canada’s parent company JBS aims to offload its assets following fines and a corruption scandal.