USA – Darling Ingredients Inc., a global collector and recycler of animal processing by-products and used restaurant cooking oil, is expanding its portfolio through a US$1.1billion acquisition of Valley Proteins, Inc.
Based in Winchester, Virginia, Valley Proteins is a renderer and recycler of waste produced through animal processing as well as used cooking oil.
The company has a rich 70-plus year history of providing essential services to the meat processing industry and restaurant locations and our teams will work diligently to complete this acquisition in a timely manner.
It currently operates 18 rendering and used cooking oil facilities in the southern, southeast, and mid-Atlantic regions of the United States and has a workforce that numbers about 1,900.
The acquisition will provide Darling Ingredients with additional low-carbon feedstock to produce renewable diesel and potentially sustainable aviation fuel, the company said.
“We are pleased to add Valley Proteins to our global ingredient family and we expect this acquisition to be accretive post integration,” said Randall C. Stuewe, chairman and chief executive officer of Darling Ingredients.
“In the evolving world of ESG and global decarbonization, Valley Proteins will supplement Darling’s global supply of waste fats and greases.”
In December, Darling reported net sales of US$1.2 billion for the third quarter of 2021, as compared with net sales of US$851 million for the same period a year ago.
Net income attributable to the company for the three months ended October 2, 2021, was US$146.8 million, compared to net income of $101.1 million, or $0.61 per diluted share, for the third quarter of 2020.
“We produced another strong quarterly earnings in our global ingredients business, reporting adjusted EBITDA of approximately $230 million for the third quarter,” said Stuewe.
Stuewe attributed the rise in operation profits to steady demand for protein products and low carbon feedstocks around the world.
The Darling Ingredients CEO noted that demand for its products will enable the company to deliver its best annual financial results in history.
Meanwhile, Climate awareness and investor interest in sustainable business practices have surged this year, with companies and investors looking to factor in environmental social governance (ESG) policies.
Earlier this month, packaging products provider Sonoco Products Co said it would buy sustainable metal packaging maker Ball Metalpack for US$1.35 billion to expand its sustainable packing portfolio.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE