Darling Ingredients and Tessenderlo Group Sign Definitive Agreement to form New Company to Accelerate Growth in Attractive Collagen-Based Health, Wellness and Nutrition Sector

Core Viewpoint - Darling Ingredients Inc. and Tessenderlo Group have signed a definitive agreement to combine their collagen and gelatin segments into a new company, aiming to leverage global collagen market growth without requiring cash or initial investment from either party [1][2]. Group 1: Joint Venture Details - The new company will merge Darling Ingredients' Rousselot business with Tessenderlo Group's PB Leiner business, with Darling holding an 85% ownership stake and Tessenderlo holding 15% [2]. - The combined entity is projected to generate approximately $1.5 billion in annual revenue and will have a total gelatin and collagen capacity of about 200,000 metric tons across 22 facilities in South America, North America, Europe, and Asia [2]. Group 2: Strategic Benefits - The integration is expected to create significant synergies and opportunities to develop the Nextida product portfolio, which aims to deliver targeted health benefits and enhance earnings potential [3]. - The partnership is anticipated to foster growth and enhance shareholder value for Darling Ingredients, as collagen is identified as the fastest-growing segment within its food division [4]. Group 3: Company Backgrounds - Darling Ingredients is a leader in circularity, processing about 15% of the world's animal agricultural by-products and producing approximately 30% of the world's collagen [5]. - Tessenderlo Group operates in over 100 countries, focusing on agriculture, bio-residual valorization, and industrial solutions, employing more than 7,000 people globally [6].