EDMONTON – The threat to Canada’s beef industry from E. coli was underscored this week when one of its biggest players was toppled in the wake of the largest meat recall in the nation’s history.
With its losses mounting, XL Foods of Edmonton announced plans Wednesday to sell its slaughterhouse in Brooks and other assets to a multinational giant for $45 million less than it paid just three years ago.
As part of the $100-million agreement, JBS USA has taken immediate control of the facility that was shut down by federal regulators on Sept. 27 due to contamination with E. coli. In addition, the company has an option to buy beef packing plants in Calgary, Nebraska and Idaho, as well as a feedlot in Brooks and adjacent farmland.
Experts say it is no surprise that XL’s owners, Edmonton-based Nilsson Bros., decided to sell in the face of a financial tsunami. In the last month, XL Foods had likely lost more than $100 million in recalled products alone, not to mention the cost of recalling them from across North America and Puerto Rico. It also faces possible litigation from 15 people who have contracted E. coli poisoning, and was likely to lose market share due to waning consumer confidence.
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