Darling International, a US-based provider of rendering and bakery residuals recycling solutions, is set to acquire Vion Ingredients, a division of Vion Food, for approximately EUR1.6bn.
Vion Ingredients is engaged in the development and production of specialty ingredients from animal origin, designed for use in pharmaceuticals, food, feed, pet food, fertilizer and bio-energy. It operates a global network of 58 facilities on five continents with an approximate 5,700 staff.
The unit has its presence across Europe with operations in the Netherlands, Belgium, Germany, Poland and Italy under the Rendac and Sonac brand names.
Its product line includes edible fats, blood products and plasma meals, bone products, protein meals and fats.
Darling plans to fund the deal through a combination of bank debt, public debt and equity and expects the acquisition to be immediately accretive to its earnings per share.
The company was advised by JP Morgan Securities, while Goldman Sachs, BMO Capital Markets and JP Morgan Securities provided committed financing.
Darling International chairman and CEO Randall Stuewe said the combination of Vion Ingredients with Darling International will create the global leader in converting edible and inedible bio-nutrients streams into specialty products and ingredients for the food, feed, fuel, fertilizer and pharmaceutical industries.
"Furthermore, this transaction will further diversify Darling International's revenue and EBITDA profile both geographically and from a product line point of view," Stuewe added.
The transaction, which is subject to customary regulatory approvalsand finalization of employee consultations in the Netherlands, is expected to be completed in January 2014.
Vion Ingredients will continue to be led by CEO Dirk Kloosterboer, who will be named chief operating officer of Darling International.
