JBS USA says it intends to complete its purchase of two XL Foods beef packing plants in the U.S., effective Monday.
The Greeley, Colo. company is taking over a plant in Omaha, Neb., that can process 1,100 head of cattle per day and a plant in Nampa that is idle. JBS said it has no immediate plans to reopen the Idaho plant.
XL Four Star Beef closed the Nampa plant at 3611 E. Amity Ave. two years ago. The plant was built by Kings Packing Co. around 1926 in what was then a rural farming area. It was sold over the decades to a series of owners, including Armour Food Co., ConAgra and Swift & Co., which closed the plant in August 2005. Canada-based XL Foods bought the Nampa and Omaha plants from Swift in April 2006. It reopened the Nampa plant in February 2007 to much local fanfare.
"The economics of operating the facility combined with the capital requirements of a plant of this age make it unfeasible to operate, " said Brian Nilsson, co-CEO of XL Foods in April 2011.
In October, JBS said it had agreed to pay $50 million in cash and $50 million in JBS shares if it exercised an option to buy the two U.S. plants, two beef packing plants and a feedlot in Canada, and adjacent farmland that supports the feedlot operation from XL Foods.