Maksim Labkouski
Darling Ingredients (NYSE:DAR) said Tuesday it agreed to acquire Gelnex, a global producer of collagen products including gelatin and collagen peptides, for ~$1.2B in cash.
Brazil-based Gelnex has five facilities in South America and one in the U.S., with the combined capacity to produce 46K metric tons/year of collagen products, which it exports to more than 60 countries.
“Driven by strong growth in demand for collagen products in the global health and nutrition market, we anticipate the collagen peptides market to double in the next five years,” Darling (DAR) Chairman and CEO Randall Stuewe said, adding that the Gelnex acquisition will be immediately accretive.
Darling Ingredients (DAR) shares recently were initiated with a Buy rating at Stifel.
