Darling Ingredients, Tessenderlo Group to form new company

Darling Ingredients (DAR) announced the signing of a non-binding term sheet with Tessenderlo Group to combine the collagen and gelatin segments of their companies into a new company called Nextida, requiring no cash or initial investment from either party. This strategic partnership aims to create a top-tier, collagen-based health, wellness and nutrition products company positioned to capitalize on global collagen growth. The transaction is subject to negotiation and execution of definitive documentation by the parties. Pending regulatory approvals, Nextida will operate as a joint venture, with Darling Ingredients holding a majority, 85% ownership stake and Tessenderlo Group holding the remaining 15%. Nextida will combine Darling Ingredients’ collagen and gelatin business, branded as Rousselot, with Tessenderlo Group’s PB Leiner business. The combination will result in a new company, initially with expected annual revenue of approximately $1.5B, and total gelatin and collagen capacity of about 200,000 metric tons across 23 facilities located in South America, North America, Europe and Asia. Over time, the integration of the two companies provides significant opportunities to realize synergies and develop the Nextida portfolio of products, delivering targeted health benefits and providing a significant opportunity to increase earnings. Pending regulatory approvals, the transaction is expected to close in 2026.