IRVING, TEXAS — Darling Ingredients has entered an agreement to acquire all shares of Gelnex, a manufacturer of collagen, for $1.2 billion in cash. The acquisition is anticipated to close in the first quarter of 2023.
Gelnex is headquartered in Brazil and operates five facilities in South America and one in the United States, employing about 1,200 people total. The manufacturer produces 46,000 tons of collagen products annually, including gelatin and collagen peptides for use in nutrition industries, and exports its products to more than 60 countries.
According to Darling Ingredients, demand for collagen is expected to significantly rise, prompting the company’s expansion in its collagen production capacity.
“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,” said Randall C. Stuewe, chairman and chief executive officer of Darling Ingredients. “Gelnex is a well-run business and will be immediately accretive. This acquisition will allow Darling to continue to grow its presence in the health 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.”
Darling Ingredients currently offers collagen products through its brand Rousselot. Its collagen is formulated from bovine, fish and porcine sources.
“Collagen is the most abundant protein naturally found in the body, and it plays an increasing role in the health and nutrition market by consumers seeking benefits to their hair, nails, skin, joints, bones and muscles,” Stuewe said. “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, confectionery and more.”
Rousselot’s collagen lines for use in nutrition include Peptan®, Colartix® and ProTake™. The brand also produces collagen for use in biomedical industries.
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