Darling Ingredients, a prominent manufacturer of sustainable natural ingredients, signed a non-binding agreement with Tessenderlo Group to establish a new company called Nextida. This strategic partnership aims to combine their respective collagen and gelatin segments to create a premium, collagen-based health, wellness, and nutrition products business.
The new joint venture will help Darling Ingredients and Tessenderlo Group capitalize on growing collagen supplements market. Nextida will function as a joint venture, with Darling Ingredients holding a dominant 85% ownership stake.
Nextida, formed by combining Darling Ingredients’ collagen and gelatin business (Rousselot) with Tessenderlo Group’s PB Leiner business, is expected to generate an annual revenue of about US$ 1.5 billion. It will have a total gelatin and collagen capacity of around 200,000 metric tons across 23 facilities located in North America, Europe, South America, and Asia.
Views and Statements
Darling Ingredients’ latest move aligns with its ongoing efforts to expand its presence in the collagen industry. It will help the company to accelerate growth in thriving collagen-based health, wellness, and nutrition sectors.
In the words of Randall C. Stuewe, Chairman and CEO of Darling Ingredients, “Collagen has become the fastest-growing area of our food segment business over the last few years, and with the addition of PB Leiner’s products, assets, and people, we are well positioned to improve focus and scale in this expanding segment.”
The new joint venture will also help Tessenderlo Group to boost its revenue as well as expand its customer base. Tessenderlo Group’s CEO, Luc Tack, stated, “We will benefit from each other by sharing technology expertise as well as providing complementary offerings, including gelatin and collagen peptides, for our global customer base and
Impact and Future Outlook
The new joint venture between Darling Ingredients and Tessenderlo Group is expected to create new growth opportunities while expanding options to improve shareholder value. It will help these companies to meet the rising demand for collagen products without requiring additional infrastructure investment.
Nextida formation can provide a blueprint for other companies to employ strategies like collaboration and joint ventures to solidify their position as well as capitalize on emerging opportunities.
Sources:
Multimedia Company: FoodBev Media Ltd
Company: Darling Ingredients
