Darling Ingredients, 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."