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BY Fraser Tennant
In a move to boost production of collagen made from grass-fed cattle, US animal food manufacturing company Darling Ingredients Inc. is to acquire Brazilian collagen products maker Gelnex.
Under the terms of the definitive agreement, Darling will acquire all of the shares of Gelnex for approximately $1.2bn in cash.
With 11 state-of-the-art facilities on four continents around the world, Darling is the largest publicly traded company turning edible by-products and food waste into sustainable products, and a leading producer of renewable energy.
The company operates more than 250 plants in 17 countries and repurposes approximately 15 percent of the world’s meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertiliser, animal proteins and meals and pet food ingredients.
“Driven by strong growth in demand for collagen products in the global health and nutrition market, we anticipate the collagen peptides market to double in the next five years,” said Randall C. Stuewe, chairman and chief executive of Darling Ingredients. “Gelnex is a well-run business and will be immediately accretive.”
Headquartered in Brazil with five facilities in South America and one in the US, Gelnex has the capacity to produce 46,000 metric tons of collagen products annually, which it exports to more than 60 countries around the world and employs about 1200 employees.
“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,” added Mr Stuewe. “Collagen products can be used in a broad range of applications, including powder blends, capsules, tablets, nutritional bars, drinks, dairy, confectionery and more.”
The transaction is subject to customary regulatory approvals and is anticipated to close in the first quarter of 2023.
Mr Stuewe concluded: “This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increases our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide.”
News: Darling Ingredients to buy collagen company Gelnex for $1.2 bln
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