Darling to Purchase The Rothsay Rendering Business from Maple Leaf Foods, Terms Not Disclosed
Darling International Inc. (NYSE: DAR), a leading provider of rendering, recycling and recovery solutions to the nation's food industry, today announced that it has entered into a definitive agreement to acquire all of the assets of Rothsay, a division of Maple Leaf Foods Inc. for approximately CAD $645 million in cash. Rothsay is the leading recycler of animal by-products in Canada and provides an essential service for the efficient and environmentally responsible collecting, processing and recapturing of edible and inedible by-products. Rothsay processes raw materials into finished products of fats and proteins. These finished products are sold in domestic and international markets including the United States, Europe, Mexico and South America. Rothsay also manufactures biodiesel for domestic and international markets.
Rothsay has a network of five rendering plants in Manitoba, Ontario and Nova Scotia and a biodiesel operation in Quebec, Canada. Rothsay employs approximately 550 people and generated approximately CAD $85.0 million of EBITDA over each of the past two fiscal years.
Darling expects to finance the transaction through a combination of borrowings under a new Senior Secured Revolving Credit Facility and Term A Bank Loan Facility which will be entered into in connection with the closing of the transaction.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.