Darling Ingredients and Tessenderlo Group are merging their collagen and gelatin businesses into a joint venture named Nextida™, aimed at creating a $1.5 billion revenue entity in the rapidly expanding collagen sector.

Target Company Overview

Darling Ingredients Inc. has announced a strategic partnership with Tessenderlo Group to establish a new entity called Nextida™, which will focus on the fast-growing sectors of collagen-based health, nutrition, and food products. This venture will result in a combined revenue of approximately $1.5 billion and will consolidate the collagen and gelatin segments from both companies. Darling Ingredients will maintain an 85% ownership stake, while Tessenderlo Group will hold the remaining 15%. This innovative agreement is structured as a non-cash transaction, allowing both companies to merge their respective assets and capabilities without an initial financial outlay.

Industry Overview

The collagen market has shown remarkable growth in recent years, driven by increasing consumer demand for collagen-based products in health, beauty, and nutrition sectors. With rising awareness of the benefits of collagen for skin health, joint support, and overall wellness, this market is poised for continued expansion. Specifically, the global collagen market is projected to flourish, with significant contributions from regions such as North America, Europe, and Asia.

In South America, where consumer trends are shifting towards healthy eating and nutritional supplements, the demand for collagen has surged. As consumers become more