Darling International to Buy Vion Ingredients for $2.17 Billion
Darling International Inc. (DAR) agreed to purchase Vion Holding N.V.'s Vion Ingredients business for about EUR1.6
billion ($2.17 billion) in cash, giving the food-industry services company new animal by-product lines and greater
exposure to Europe.
Vion Ingredients creates ingredients for applications in pharmaceuticals, feed, pet food, fertilizer and bio-energy.
Its global network of 58 facilities covers aspects of animal by-product processing through six brands involved in
rendering, hides, proteins, fats and blood products and gelatin.
The business was formed in 1930 and is headquartered in Son en Breugel, the Netherlands. Vion Ingredients has about
5,700 employees and had revenue of about EUR1.6 billion and earnings before interest, taxes, depreciation and
amortization of EUR200 million for fiscal year 2012.
"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," Darling Chief Executive Randall C. Stuewe said.
Darling helps remove kitchen waste such as cooking oils, inedible waste from large bakeries and snack food
manufacturers and other by-products and makes finished products such as animal feeds, fats and oils from them. Its
rendering services collect by-products from food processing chains and turn them into protein and hide products.
Vion Ingredients, its brands and geographies will continue to be led by CEO Dirk Kloosterboer. In addition to his
current responsibilities, upon closing, he will be named chief operating officer of Darling and be appointed to
Darling plans to finance the deal through a combination of bank debt, public debt and equity, and expects the
acquisition to be immediately beneficial to adjusted earnings per share.
Darling in August agreed to buy Rothsay, a division of Maple Leaf Foods Inc. (MFI.T, MLFNF), for about C$645 million
($611 million), expanding its capabilities in Canada.
Shares of Darling closed Friday at $20.33 and were inactive premarket. The stock is up 27% so far this year.
Write to Ben Fox Rubin at email@example.com
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