JBS USA is assuming the management of the XL Foods Lakeside beef processing plant in Brooks and will take over the facility's day-to-day operations.
JBS is based in Brazil and is a leading animal protein processor in the U.S. and Australia.
Included in the agreement is an option to but the plant in Brooks and also facilities and feedlots in Calgary.
"We know full well the commitment it takes to manage world-class operations that produce safe and nutritious products for consumers around the world," said Bill Rupp, president and chief operating officer of JBS USA.
"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."
Brian Nilsson, co-CEO of XL Foods, issued a brief news release addressing the announcement.
"This action is another positive step to relicensing the XL Lakeside beef plant in Brooks, Alta.," he said. "We welcome the assistance of JBS and their resources."
JBS says it will pay $50M US and $50M in JBS shares for the operations.
Pople in the beef industry say they are excited about the deal and the new management is great news for Alberta Beef.
"So a worldwide production footprint, an internationally focused company that knows how to operate safely, knows how to operate with low costs, brings in the top notch management. I think this is good news for Canada. It's certainly the support that the Nilsson brothers need in getting through this current problem," Ted Haney, a beef industry expert says.
The Canadian Food Inspection Agency has completed its inspection, but there is still no word on when the plant will reopen.
