Irving-based Darling Ingredients Inc. (NYSE: DAR) has entered an agreement to acquire Brazil-based gelatin and collagen peptides producer Gelnex for approximately $1.2 billion in cash, according to a news release. The transaction is scheduled to close in early 2023.
"This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increase our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide," Randall C. Stuewe, chairman and CEO of Darling, said in the release.
Gelnex has the capacity to make 46,000 metric tons of collagen products annually. The company has five facilities in South America and one in the U.S.
"Our versatile and high-quality collagen products can be used in a broad range of applications, including powder blends, capsules, tablets, nutritional bars, dairy, drinks, confectionery and more," Stuewe said in the release.
New York-based investment company Morgan Stanley & Co. served as Darling Ingredients' exclusive financial advisor in the transaction.
Darling Ingredients focuses on turning food waste into sustainable products and producing renewable energy. The company operates more than 250 plants in 17 countries.
In August, Darling Ingredients acquired Brazil's largest independent rendering company FASA Group. As part of the transaction, the company acquired 14 plants that process more than 1.3 million metric tons annually.
