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Darling Ingredients has announced a definitive agreement with Tessenderlo Group to merge their collagen and gelatin segments into a new, jointly-owned company.

This strategic partnership, which requires no initial cash investment, aims to capitalise on the burgeoning global demand for collagen-based health and wellness products.

The joint venture, initially revealed in May, will combine Darling Ingredients’ established Rousselot brand with Tessenderlo’s PB Leiner business. Under the terms of the agreement, Darling Ingredients will maintain a commanding 85% ownership stake, while Tessenderlo will hold the remaining 15%.

The new entity is projected to generate approximately $1.5 billion in annual revenue, bolstered by a combined gelatin and collagen production capacity of around 200,000 metric tons across 22 facilities worldwide, spanning South America, North America, Europe and Asia.

Randall C Stuewe, chairman and CEO of Darling Ingredients, said: “This collaboration is set to unlock new avenues for growth and enhance shareholder value. Collagen is the fastest-growing segment of our food business, and with PB Leiner’s expertise and product offerings, we are poised to drive innovation and scale in this dynamic market.”

Pending regulatory approvals, the merger is expected to finalise in 2026, setting the stage for a robust entry into the collagen sector, which has seen increasing consumer interest due to its perceived health benefits.

The global collagen market is projected to grow significantly, driven by rising consumer awareness regarding health and wellness.

The merger positions the new company to leverage this trend, particularly as collagen is increasingly incorporated into dietary supplements, functional foods and beverages.

Both companies are recognised leaders in their respective fields, with Darling Ingredients processing about 15% of the world’s animal agricultural by-products and producing roughly 30% of global collagen.

Tessenderlo Group, with its extensive operations in over 100 countries, brings a wealth of experience in industrial solutions and bio-residual valorisation, further enhancing the capabilities of the new venture.