Darling Ingredients Inc. Completes Acquisition of Brazil's Largest Independent Rendering Company, FASA Group

Rhea-AI Summary

Darling Ingredients Inc. (NYSE: DAR) has successfully acquired FASA Group, Brazil's largest independent rendering company, for approximately R$2.8 billion (about $542.6 million). This acquisition, first announced in May 2022, includes 14 processing plants capable of handling over 1.3 million metric tons annually, with two additional plants under construction. CEO Randall C. Stuewe noted that this move significantly enhances their specialty ingredients business and mitigates supply chain risks by providing low-carbon waste fats for renewable diesel and sustainable aviation fuel production.

Positive

• Acquisition of FASA Group strengthens market position in Brazil.
• Expected immediate accretion to financial performance.
• Diversifies supply chain with additional sources of low-carbon waste fats.

Negative

• None.

IRVING, Texas, Aug. 1, 2022  /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), the world's premier company repurposing animal and food byproducts into specialty food and feed ingredients and a leader in decarbonization solutions, today announced it has completed the acquisition of Brazil's largest independent rendering company, FASA Group.

The company first announced the acquisition in May 2022 for a purchase price of approximately R$2.8 billion Brazilian Real in cash ($542.6 million USD at today's exchange rate), plus or minus various closing adjustments and a contingent payment based on future earnings growth. As part of the transaction, Darling Ingredients has acquired 14 plants that process more than 1.3 million metric tons annually, with an additional two plants under construction.   

"Brazil will play a big role in feeding a growing world population, which makes it a premier location to grow our specialty ingredients business," Randall C. Stuewe, Chairman and Chief Executive Officer, Darling Ingredients. "FASA is a well-run business, will be immediately accretive and further de-risks the supply chain by providing an additional source of non-food based, low-carbon waste fats to be used in the production of renewable diesel and sustainable aviation fuel."

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 250 plants in 17 countries and repurposes nearly 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.

Contact: 
Suann Guthrie
VP, Investor Relations, Sustainability & Communications
(469) 214-8202, Suann.guthrie@darlingii.com

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SOURCE Darling Ingredients Inc.

FAQ

What is the value of Darling Ingredients' acquisition of FASA Group?

The acquisition was valued at approximately R$2.8 billion Brazilian Real, or about $542.6 million USD.

How many plants did Darling Ingredients acquire with FASA Group?

Darling Ingredients acquired 14 plants with plans for two additional plants under construction.

When was the acquisition of FASA Group first announced?

The acquisition was first announced in May 2022.

What strategic advantages does the acquisition provide Darling Ingredients?

The acquisition is expected to enhance their specialty ingredients business and reduce supply chain risks.

How does the acquisition impact Darling Ingredients' production capabilities?

The acquisition increases Darling Ingredients' capacity by processing over 1.3 million metric tons annually.