Darling Ingredients To Buy Brazilian Collagen Producer Gelnex For Around $1.2 Bln Cash

(RTTNews) - Darling Ingredients Inc. (DAR), a recycling and green energy firm, said on Tuesday that it has inked a deal to buy Gelnex, a Brazilian maker of collagen products, for around $1.2 billion in cash.

The transaction is expected to be closed in first quarter 2023.

Randall C. Stuewe, Chairman and CEO of Darling Ingredients, said: "…Gelnex is a well-run business and will be immediately accretive. 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."

With five facilities in South America and one in the U.S., Gelnex has the capacity to produce 46,000 tons of collagen products a year, which it exports to over 60 countries.