Darling International To Acquire Vion Ingredients For About EUR 1.6 Bln In Cash

(RTTNews) - Food waste recycling company Darling International Inc. (DAR) Monday said it has entered into a definitive agreement to acquire the shares, other than certain minority interests, of the Netherlands-based Vion Ingredients, a division of Vion Holding N.V., for about 1.6 billion euros in cash.

Darling expects the acquisition, excluding one-time charges, before synergies, and pro forma for financing to be immediately accretive to earnings per share.

Randall Stuewe, Darling International's chairman and CEO stated, "Our vision of creating a sustainable ingredients business for a growing population is well on its way. The combination...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."

Vion Ingredients develops and produces specialty ingredients from animal origin for applications in pharmaceuticals, food, feed, pet food, fertilizer and bio-energy. Vion Holding is a member of Eindhoven, the Netherlands-based Vion Food Group.

Darling noted that Vion Ingredients' global network of 58 facilities on five continents covers all aspects of animal by-product processing through six brands. The brands include Rendac, Sonac, Ecoson, Rousselot, CTH, and Best Hides.

Rousselot is a provider of gelatin for food, pharmaceuticals, and pet food industries with operations in the U.S., Europe, South America and China. CTH is a market leader in natural casings for sausage business with operations in the U.S., Europe and China, Darling said.

Value added products include edible fats, blood products and plasma meals, bone products, protein meals and fats.

Stuewe noted that the transaction will further diversify Darling International's revenue and EBITDA profile both geographically and from a product line point of view.

Formed in 1930, Son en Breugel, the Netherlands-headquartered Vion Ingredients employs about 5,700 people.

For full-year 2012. the firm recorded revenues of around 1.6 billion euros, and EBITDA of 200 million euros. For the trailing 12 months through June 30, 2013, reported revenues were 1.687 billion euros, with about 210 million euros of EBITDA.

Vion Ingredients, its brands and geographies will continue to be led by CEO Dirk Kloosterboer. In addition to his current responsibilities he will be named chief operating officer of Darling International, upon closing of the deal. He will also be appointed to the Darling International board of directors.

Closing of the deal is expected in January 2014, subject to customary regulatory approvals and finalization of required employee consultations in the Netherlands.

Darling plans to finance the transaction through a combination of bank debt, public debt and equity.

DAR closed Friday's regular trading at $20.33 on the NYSE.