Darling Ingredients Acquires Brazilian Collagen Producer Gelnex For $1.2B Cash - Darling Ingredients (NYSE:DAR)

Darling Ingredients Inc DAR has entered into a definitive agreement to acquire all of the shares of collagen products producer Gelnex for $1.2 billion in cash.
Gelnex, headquartered in Brazil with five facilities in South America and one in the U.S., exports to more than 60 countries worldwide and has 1,200 employees.
Gelnex has the capacity to produce 46,000 metric tons of collagen products annually.
Darling’s health brand Rousselot is a manufacturer and supplier of hundreds of collagen products made from bovine, porcine and fish sources.
Collagen plays an increasing role in the health and nutrition market by consumers seeking benefits for their hair, nails, skin, joints, bones, and muscles.
The transaction is expected to be closed in the first quarter of 2023.
"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," said CEO Randall C. Stuewe.
As of July 2, 2022, Darling had $146.8 million in cash and equivalents and $1.4 billion available under its committed revolving credit agreement.
Price Action: DAR shares are trading lower by 0.60% at $76.54 on the last check Tuesday.
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