In a surprising move, XL Foods has announced it is getting Canadian subsidiary of JBS USA to manage certain parts of its brooks plant and possibly allow it to buy if it so chooses.

Co-CEO Brian Nilsson says this action is another positive step to relicensing the XL Lakeside beef plant in Brooks, Alberta.

He says they welcome the assistance of JBS and their resources.

The management agreement affords JBS the option to purchase XL’s Lakeside beef plant, XL’s Calgary beef plant and XL’s U.S. beef packing operations.

This agreement also includes the option to purchase Lakeside feedyards, a feedlot and farming operation across the road from the packing plant.

JBS is a world-leading animal protein processor based out of the U.S.