Darling Ingredients Completes Acquisition of Brazilian Gelatin and Collagen Producer Gelnex

Rhea-AI Summary

Darling Ingredients (NYSE: DAR) has completed the acquisition of Gelnex, a major producer of gelatin and collagen, for approximately $1.2 billion in cash. This acquisition, announced in October 2022, enhances Darling's production capacity with the addition of six facilities across the Americas, capable of producing 46,000 metric tons of products annually. Darling anticipates that Gelnex will contribute about $75 million in EBITDA for 2023 after accounting for integration costs. The CEO emphasized that the acquisition will boost capacity to meet the increasing demand for collagen and gelatin products.

Positive

• Acquisition of Gelnex for approximately $1.2 billion enhances production capacity.
• Expected EBITDA contribution of $75 million in 2023 from Gelnex.
• Increased capability to serve growing collagen and gelatin markets.

Negative

• None.

IRVING, Texas, April 3, 2023 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR) the world's leading company turning food waste into sustainable products and producer of renewable energy, completed the acquisition of Gelnex, a leading global producer of gelatin and collagen products on March 31, 2023.

The company first announced the acquisition in October 2022 for a purchase price of approximately $1.2 billion USD in cash, plus or minus closing adjustments and costs. As part of the transaction, Darling Ingredients has acquired five facilities in South America and one in the United States, with the capacity to produce 46,000 metric tons of gelatin and collagen products annually. Darling Ingredients estimates that Gelnex will contribute approximately $75 million in EBITDA toward Darling's earnings in 2023, net of inventory and integration costs.

"This acquisition gives Darling immediate capacity to serve the growing needs of its collagen customers, while continuing to serve the growing gelatin market," said Randall C. Stuewe, Chairman and Chief Executive Officer. "Gelnex is a well-run business and is expected to be immediately accretive."

With 17 state-of-the-art facilities on four continents around the world, Darling Ingredients' health brand Rousselot is a leading manufacturer and worldwide supplier of hundreds of gelatin and collagen products made from bovine, porcine and fish sources.

"Collagen is the most abundant protein naturally found in the body, and it plays an increasing role in the health and nutrition market by consumers seeking benefits to their hair, nails, skin, joints, bones and muscles," Stuewe said. "Our versatile and high-quality collagen products can be used in a broad range of applications, including powder blends, capsules, tablets, nutritional bars, drinks, dairy, confectionery and more."

About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates more than 250 plants in 17 countries and repurposes approximately 15% of the world's meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertilizer, animal proteins and meals and pet food ingredients. To learn more, visit darlingii.com. Follow us on LinkedIn.

Cautionary Statements Regarding Forward-Looking Information
This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future earnings, cash flow, synergies, performance, capital expenditures and other information that is not historical information. When used in this release, the words "outlook," "forecast," "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "will" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include the Company's ability to realize the anticipated benefits of the transaction. Numerous other factors, many of which are beyond the Company's control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

 

Darling Ingredients Contacts
Investors:	Suann Guthrie
	SVP, Investor Relations, Sustainability & Communications
	(469) 214-8202; suann.guthrie@darlingii.com
Media:	Jillian Fleming
	Director, Global Communications
	(972) 5451-7115; jillian.fleming@darlingii.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/darling-ingredients-completes-acquisition-of-brazilian-gelatin-and-collagen-producer-gelnex-301787776.html

SOURCE Darling Ingredients Inc.

FAQ

What was the acquisition price for Gelnex by Darling Ingredients?

Darling Ingredients acquired Gelnex for approximately $1.2 billion in cash.

When was the acquisition of Gelnex completed by Darling Ingredients?

The acquisition was completed on March 31, 2023.

How much EBITDA is Gelnex expected to contribute in 2023?

Gelnex is expected to contribute approximately $75 million in EBITDA for 2023.

What is the significance of the Gelnex acquisition for Darling Ingredients?

The acquisition enhances Darling's capacity to meet the growing demand for collagen and gelatin products.