Darling Ingredients and Tessenderlo Group have announced a joint venture, Nextida™, aimed at merging their collagen and gelatin segments to create a $1.5 billion revenue company focused on health and wellness products.

Target Company Overview

Darling Ingredients Inc. (NYSE: DAR) and Tessenderlo Group (XBRU: TESB) have announced the formation of a new joint venture, Nextida™, to merge their collagen and gelatin business segments. This strategic partnership aims to create a robust company focused on collagen-based health, wellness, and nutrition products, capitalizing on the rapidly growing global collagen market.

Nextida™ will be primarily owned by Darling Ingredients, which will hold 85% of the new entity while Tessenderlo Group retains the remaining 15%. This non-cash transaction combines the businesses of Darling's Rousselot and Tessenderlo's PB Leiner, initially targeting an annual revenue of approximately $1.5 billion with a combined production capacity of 200,000 metric tons across 23 facilities spanning South America, North America, Europe, and Asia.

Industry Overview in the Collagen Sector

The collagen market has demonstrated a significant upward trajectory over the past several years, driven largely by increasing consumer demand for health and wellness products. Collagen supplements and ingredients have become highly sought after f