Cherished Ingredients to Acquire – GuruFocus.com

IRVING, TX, October 18, 2022 /PRNewswire/ — Darling Ingredients Inc. (NYSE: DAR), a global leader in converting food waste into sustainable products and producer of renewable energy, today announced that it has entered into a definitive agreement to acquire all of the shares of Gelnex , a leading global producer of collagen products (including gelatin and collagen peptides), for approximately US$1.2 billion in liquid. The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2023.

Based at Brazil with five facilities in South America and one in United StatesGelnex has the capacity to produce 46,000 metric tons of collagen products per year, which it exports to more than 60 countries around the world, and employs approximately 1,200 employees.

“Driven by strong growth in demand for collagen products in the global health and nutrition market, we expect the collagen peptides market to double over the next five years,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increase our capacity to produce grass-fed bovine collagen by South America to help meet the future demand of our collagen customers around the world. »

With 11 state-of-the-art facilities on four continents around the world, Darling Ingredients’ Rousselot health brand is one of the world’s leading manufacturers and suppliers of hundreds of collagen products made from bovine, porcine and and fish.

“Collagen is the most abundant protein naturally found in the body, and it is playing an increasing role in the health and nutrition market by consumers seeking benefits for their hair, nails, skin, joints , their bones and muscles,” Stuewe said. “Our versatile, high-quality collagen products can be used in a wide range of applications, including powder mixes, capsules, tablets, nutritional bars, beverages, dairy products, confections, and more. .”

Morgan Stanley & Co. LLC acted as exclusive financial advisor to Darling Ingredients in connection with the transaction.

Darling Ingredients will host an investor conference call and webcast at 11:00 a.m. ETtoday, October 18, 2022. Due to historically high call volume, the company is offering attendees the option to pre-register for the conference via the following link: https://dpregister.com/sreg/10172598/f4e5203cce

Attendees who do not wish to pre-register for the call can dial 844-868-8847 (US callers) or 412-317-6593 (international callers) and request the “Darling Ingredients” call. A replay will be available two hours after the call ends through October 25, 2022. To access the replay, please dial 877-344-7529 (US calls), 855-669-9658 (Canada) and 412-317-0088 (international callers) and reference access code 2178877. The live webcast and archived replay can also be accessed at http://ir.darlingii.com.

About darling

Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company transforming edible by-products and food waste into sustainable products and a major producer of renewable energy. Recognized as a leader in sustainability, the company operates more than 250 factories in 17 countries and reuses around 15% of the global meat industry’s waste streams into value-added products, such as green energy, diesel renewable energy, collagen, fertilizers, proteins and animal meal. and pet food ingredients. To learn more, visit darlingii.com. Follow us on LinkedIn.

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SOURCE Darling Ingredients Inc.