The world's largest beef and pork processor is expanding its footprint in Minnesota with the purchase of a nearly shuttered plant in Pipestone.
JBS USA, the U.S. subsidiary of Brazil's JBS S.A., said Tuesday it has agreed to lease the beef processing facility with plans to later acquire it from J&B Group. The deal saves more than 130 jobs in the small southwestern Minnesota town.
The seller, St. Michael, Minn.-based J&B, announced in September it would end production at the Pipestone plant and close it in early December.
The facility will become JBS USA's third processing plant in Minnesota. It already operates an extensive hog slaughterhouse in Worthington and a chicken deboning and breast meat packaging plant in Cold Spring, which it inherited with the 2017 acquisition of St. Cloud-based Gold'n Plump.
JBS USA is the majority stakeholder in Colorado-based Pilgrim's Pride Corp.
Terms of the deal were not disclosed.
"We are excited to welcome the Pipestone team members to JBS USA," Bob Krebs, chief operating officer for JBS USA's pork business, said in a news release. "We have worked with the J&B team under the common goals of preserving jobs and creating a sustainable future for the facility."
He added JBS plans to invest in the plant and grow its business there.
