Darling Ingredients Inc. to Acquire Largest Independent Brazilian Rendering Company, FASA Group

Rhea-AI Summary

Darling Ingredients Inc. (NYSE: DAR) has announced a definitive agreement to acquire FASA Group, Brazil's largest independent rendering company, for approximately R$2.8 billion (about $560 million USD). This acquisition will enhance Darling's supply of low carbon waste fats and oils, positioning the company as a leader in renewable diesel production in North and South America. The transaction is anticipated to close by the end of 2022, subject to customary conditions. FASA operates 14 rendering plants and has plans for two more, processing over 1.3 million metric tons annually.

Positive

• Acquisition of FASA Group enhances supply of low carbon waste fats for renewable diesel production.
• Strengthens Darling's market position in Brazil, a leader in agricultural commodities.
• FASA's processing capacity of 1.3 million metric tons annually and two new plants planned.

Negative

• None.

IRVING, Texas, May 5, 2022 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), the world's leading company turning food waste into sustainable products and producer of renewable energy, today announced it has entered into a definitive agreement to purchase Brazil's largest independent rendering company, FASA Group for approximately R$2.8 billion Brazilian Real in cash ($560 million USD at today's exchange rate), subject to post-closing adjustments and a contingent payment based on future earnings growth.  FASA Group processes more than 1.3 million metric tons annually through 14 rendering plants with an additional two plants under construction, and has approximately 2,400 employees. 

"Brazil is a leader in global agricultural commodities growth and is expected to take on a bigger role in world's meat production, making it a premier location for rendering growth," said Randall C. Stuewe, Chairman and Chief Executive Officer, Darling Ingredients. "FASA will also supplement Darling Ingredient's global supply of waste fats, making it a leader in the supply of low carbon waste fats and oils in North and South America to be used in the production of renewable diesel."

The transaction is subject to customary closing conditions, and is expected to close by the end of 2022.  

About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning 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 10% 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 the acquisition of FASA Group by Darling Ingredients?

The acquisition is valued at approximately R$2.8 billion, equivalent to about $560 million USD.

When is Darling Ingredients expected to finalize the acquisition of FASA Group?

The acquisition is expected to close by the end of 2022, pending customary closing conditions.

How will the acquisition of FASA Group impact Darling Ingredients' operations?

The acquisition will enhance Darling's supply of low carbon waste fats for renewable diesel production, strengthening its market position.

What is FASA Group's processing capacity?

FASA Group processes over 1.3 million metric tons annually through its 14 rendering plants.

What strategic advantage does this acquisition provide for Darling Ingredients?

It allows Darling to capture a larger share of the sustainable products market in South America, particularly in renewable energy.