Darling Ingredients Inc. (NYSE:DAR) today announced the signing of a definitive agreement with Tessenderlo Group (XBRU: TESB) to combine the collagen and gelatin segments of their companies into a new company, requiring no cash or initial investment from either party. This strategic partnership aims to create a top-tier, collagen-based health, wellness and nutrition products company positioned to capitalize on global collagen growth.
Darling Ingredients first announced the joint venture in May. The proposed new company will combine Darling Ingredients' collagen and gelatin business, branded as Rousselot, with Tessenderlo Group's PB Leiner business. Darling Ingredients will hold a majority, 85% ownership stake and Tessenderlo Group will hold the remaining 15%. The combination will result in a new company, initially with expected annual revenue of approximately $1.5 billion, and total gelatin and collagen capacity of about 200,000 metric tons across 22 facilities located in South America, North America, Europe and Asia.
Over time, the integration of the two companies provides significant opportunities to realize synergies and develop the Nextida portfolio of products, which are designed to deliver targeted health benefits and provide a significant opportunity to increase earnings.
Pending regulatory approvals, the transaction is expected to close in 2026.