Darling Ingredients to acquire grass-fed bovine collagen company Gelnex for US$1.2 billion
20 Oct 2022 --- Darling Ingredients is set to acquire Brazil-based bovine collagen producer Gelnex. The two companies have entered into a definitive agreement wherein the acquirer will purchase all of the shares of Gelnex for approximately US$1.2 billion.
The acquisition is subject to all standard regulatory approvals and expected to complete in the first quarter of 2023.
“Gelnex is a well-run business and will be immediately accretive,” says Randall C. Stuewe, chairman and CEO of Darling Ingredients. “This acquisition will allow Darling to continue to grow its presence in the health and nutrition market and increase our production capacity for grass-fed bovine collagen in South America to help meet the future demand of our collagen customers worldwide.”
A growing market
Gelnex has five facilities in South America and one in the US and is capable of producing up to 46,000 metric tons of collagen and collagen-based products, such as gelatin and collagen peptides, annually. It also employs around 1,200 people and exports to over 60 countries worldwide.
The acquisition will increase the company’s grass fed, bovine-based collagen production capabilities. Stuewe expects the market to grow significantly in the near future as increased consumer demand is driven by research and studies that continue to promote collagen’s health benefits for joints, sports nutrition and beauty.
“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,” Stuewe underscores.
Expanding collagenic capacity
Darling Ingredients’ health nutrition brand Rousselot has 11 facilities around the world and is a leading manufacturer of fish, porcine and bovine-sourced collagen. One of the facilities, located in Ghent, Belgium, began manufacturing porcine-based collagen ingredients at the beginning of 2022.
Rousselot also launched a collagen-based joint health ingredient at Vitafoods Europe earlier this year.
“Collagen is the most abundant protein naturally found in the body and it plays an increasing role in the health and nutrition market as consumers seek benefits to their hair, nails, skin, joints, bones and muscles,” explains Stuewe.
“Our versatile and high-quality collagen products can be used in a broad range of applications, including powder blends, capsules, tablets, nutritional bars, drinks, dairy and confectionery.”
Edited by William Bradford Nichols
