Darling Ingredients to acquire Brazilian collagen maker Gelnex in $1.2bn deal

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-based sustainable products producer Darling Ingredients has agreed to acquire Brazilian collagen products company Gelnex in an all-cash deal worth approximately $1.2 billion.

With five facilities in South America and one in the US, Gelnex has an annual production capacity of 46,000 metric tons of collagen products that include gelatin and collagen peptides.

Employing about 1,200 people, the collagen producer exports its products to more than 60 countries around the world.

Randall Stuewe — Darling Ingredients Chairman and CEO, commenting on Darling Ingredients acquisition of Gelnex, said: “Driven by strong growth in demand for collagen products in the global and nutrition market, we anticipate the collagen market to double in the next five years.

“Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the 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.”

Subject to customary regulatory approvals, Darling Ingredients acquisition of Gelnex is expected to be completed in the first quarter of 2023.

Morgan Stanley & Co served as exclusive financial advisor for Darling Ingredients in connection with the transaction.

Darling Ingredients is engaged in converting edible by-products and food waste into sustainable products and is a producer of renewable energy.

Its brand Rousselot is a major manufacturer and worldwide supplier of many collagen products made from bovine, porcine, and fish sources. Rousselot has 11 advanced facilities on four continents around the world.

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