October 8, 2013

    

Darling International to buy shares of Vion Ingredients

 

Press release

 

 

   

 

Darling International Inc. has entered into a definitive agreement to acquire the shares of Vion Ingredients, a division of Vion Holding N.V. for approximately €1.6 billion (US$ 2.2 billion) in cash.

 

Subject to customary regulatory approvals and finalisation of the required employee consultations in the Netherlands, closing is anticipated in January 2014.

 

VION Food Group is a global food company headquartered in Eindhoven, the Netherlands and one of the larger food companies in the Netherlands and has operations world-wide.

 

Vion Ingredients is a worldwide leader in the development and production of specialty ingredients from animal origin for applications in pharmaceuticals, food, feed, pet food, fertiliser and bio-energy. It employs approximately 5,700 people with revenues of approximately €1.6 billion (US$2.2 billion) and €200 million (US$271 million) in EBITDA in 2012. For the trailing 12 months through June 30, 2013, reported revenues were €1.687 billion (US$2.3 billion) with approximately €210 million (US$285 million) of EBITDA.

 

Vion Ingredients' rendering business has leading positions across Europe with operations in the Netherlands, Belgium, Germany, Poland and Italy under the Rendac and Sonac brand names.

 

Randall C. Stuewe, Darling International's Chairman and CEO said, "Our vision of creating a sustainable ingredients business for a growing population is well on its way. 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, fertiliser and pharmaceutical industries. We are truly excited to have the opportunity to join forces with the Vion Ingredients management team and bring this transformational platform to our suppliers, customers and employees.  Furthermore, this transaction will further diversify Darling International's revenue and EBITDA profile both geographically and from a product line point of view. "

 

Vion Ingredients, its brands and geographies will continue to be led by CEO Dirk Kloosterboer.  In addition to his current responsibilities, upon closing, Dirk will be named Chief Operating Officer of Darling International and be appointed to the Darling International Board of Directors. 

 

Darling plans to finance the transaction through a combination of bank debt, public debt and equity, and expects this purchase, excluding one-time charges, before synergies, and pro forma for financing to be immediately accretive to earnings per share.

 

This is the second acquisition by Darling in recent months. Darling acquired rendering and biodiesel business, Rothsay from Maple Leaf Foods and the transaction is expected to close on October 28th.

 

Darling International Inc. a leading provider of rendering, recycling and recovery solutions to the nation's food industry. It recycles beef, poultry and pork by-product streams into useable ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal and hides.