Vion completes sale of ingredients unit to Darling International for €1.6bn

Dutch food company Vion has completed the sale of its ingredients unit to Darling International, a US-based food waste recycler, in a €1.6bn all-cash deal.

Headquartered in Son en Breugel, Netherlands, Vion Ingredients produces speciality ingredients from animal origin for the pharmaceutical, food, feed, pet food, fertiliser and bio-energy sectors.

The unit manufactures edible fats, blood products and plasma meals, bone products, protein meals, fats, gelatin, and natural casings for sausages under six brands – Rendac, Sonac, Ecoson, Rousselot, CTH and Best Hides.

Vion Ingredients recorded revenues of €1.6bn and EBITDA of €200m in 2012.

The sale comes after Vion’s announcement on 24 April 2013 that it would separate two of its core businesses, Food and Ingredients.

When the takeover deal was signed in October 2013, Darling stated that the acquisition would further diversify its revenue and EBITDA profile both geographically and from a product line point of view.

Darling International chairman and CEO Randall C Stuewe said at the time, “The combination of Vion Ingredients with Darling International will create the global leader in converting edible and inedible bio-nutrients streams into speciality products and ingredients for the food, feed, fuel, fertilizer and pharmaceutical industries.”

The company was advised by JP Morgan Securities, which also supported the deal with committed financing along with Goldman Sachs and BMO Capital Markets.

Vion Ingredients will continue to be led by CEO Dirk Kloosterboer, who will be appointed as COO of Darling International and will join the company’s board of directors.