JBS USA plans to acquire J&B Group meat processing facility in Pipestone

Brazilian meat processing giant JBS said that its US subsidiary JBS USA has signed an agreement with J&B Group to lease the latter’s meat processing facility in Pipestone, Minnesota.

JBS USA plans to purchase the meat processing facility in Pipestone in the future months for an undisclosed amount. The Pipestone meat processing plant was originally decided to be closed soon by J&B Group, which is a wholesale distributor, freight logistics and protein manufacturing company.

In September 2019, J&B Group announced the decision to put the Pipestone meat factory for sale and move its operations to its headquarters in St. Michael, Minnesota. At that time, J&B Group said that it was selling the meat factory due to various factors like a change in the product portfolio, an investment of $7.2 million not materializing and also the company’s plans to invest in infrastructure at its St. Michael headquarters.

The meat processing facility in Pipestone was constructed in 1990 and was acquired by J&B Group in 2007. The 53,000 square feet meat processing factory mainly produces frozen steaks, and fresh and frozen ground beef patties.

The acquisition by JBS USABob Krebs will save more than 130 jobs and ensure that the meat processing factory will continue to be a major economic contributor to the Pipestone community in the future.

Bob Krebs – COO of JBS USA Pork, said: “We are excited to welcome the Pipestone team members to JBS USA. We have worked with the J&B team under the common goals of preserving jobs and creating a sustainable future for the facility.

“We believe the facility’s infrastructure and accomplished workforce present a great opportunity to expand our ability to provide high-quality products to both domestic and export markets. We plan on investing in the facility and growing the business, allowing our new team members and the local community to grow with us.”