Darling Forges a $1.5B Collagen Giant to Capture the Wellness Boom

IRVING, TX – December 10, 2025 – In a strategic move poised to reshape the global health and wellness landscape, Darling Ingredients has signed a definitive agreement with Tessenderlo Group to merge their respective collagen and gelatin businesses. This transaction, which creates a new, yet-unnamed powerhouse with projected annual revenues of approximately $1.5 billion, is far more than a simple consolidation. It is a calculated maneuver to build a market-dominant entity engineered to capitalize on one of the fastest-growing segments in the food and nutrition industry.

The deal combines Darling's formidable Rousselot brand with Tessenderlo’s PB Leiner business, creating a global leader with an estimated production capacity of 200,000 metric tons across 22 facilities. What makes this transaction particularly noteworthy from a strategic finance perspective is its structure: the new company will be formed with no initial cash investment from either party. Darling Ingredients will command an 85% majority stake, leaving Tessenderlo with 15%, in a structure that leverages existing assets to unlock future value without immediate capital strain.

“This strategic partnership is expected to create new opportunities for growth, while expanding options to enhance shareholder value for Darling Ingredients,” stated Randall C. Stuewe, Chairman and CEO of Darling Ingredients. The statement underscores the core objective: this is not just about getting bigger, but about getting smarter and creating a platform for accelerated, high-margin growth.

A Calculated Combination

The brilliance of this transaction lies in its financial and operational architecture. By avoiding a cash-heavy acquisition, Darling Ingredients preserves its balance sheet for other strategic initiatives while simultaneously consolidating significant market power. The combination of Rousselot and PB Leiner is a merger of equals in terms of market reputation, but the 85/15 ownership split clearly establishes Darling as the controlling partner, steering the strategic direction of the new venture.

This new entity will immediately possess a commanding global footprint, with facilities spanning North and South America, Europe, and Asia. Such scale provides immense operational advantages, from optimizing global supply chains and raw material sourcing—a core competency of Darling's circular economy model—to offering a unified and comprehensive product portfolio to a worldwide customer base. The expected synergies are not merely theoretical; they are built into the very fabric of the deal, promising enhanced efficiencies in logistics, R&D, and commercialization.

For investors and executives, the transaction serves as a masterclass in value creation. It demonstrates how established industrial players can pivot and restructure to aggressively pursue high-growth consumer-facing markets without undertaking the massive risks often associated with ground-up ventures. The move effectively de-risks Darling’s expansion into the premium nutrition sector by combining two established, cash-flow-positive businesses into a single, focused juggernaut.

Capitalizing on the Collagen Craze

The timing of this merger is no coincidence. It is a direct response to the explosive growth in the global collagen market, a sector expanding at a compound annual growth rate (CAGR) of over 5.8% and projected to reach nearly $8.7 billion by 2034. The driving force behind this demand is a powerful shift in consumer behavior toward proactive health management, wellness, and “beauty-from-within” solutions.

Collagen, once primarily known as the base for gelatin, has been rebranded in the consumer mindset as a vital ingredient for skin elasticity, joint health, and athletic recovery. The nutraceuticals segment, which accounts for over 40% of the collagen market, is booming as consumers increasingly seek out functional foods and dietary supplements backed by science. Hydrolyzed collagen, or collagen peptides, are particularly sought after for their high bioavailability and ease of use, making them a staple in everything from protein powders to fortified snack bars.

As Stuewe noted, “Collagen continues to be the fastest-growing part of our food segment.” This deal doubles down on that growth, positioning the new company to not only meet existing demand but to actively shape the future of the market. With its vast production capacity and global reach, the venture will be uniquely equipped to serve large-scale food, beverage, and nutraceutical clients who require a consistent and high-quality supply of collagen ingredients.

Beyond Scale: The Innovation Engine

While the scale of the new company is its most immediately apparent strength, its long-term competitive advantage may lie in its innovation pipeline. The press release hints at this with a reference to the 'Nextida' portfolio, a platform developed by Rousselot that represents the next frontier in collagen science.

Nextida is not just another brand of collagen; it's a platform designed to deliver specific, scientifically validated health benefits by “cracking the collagen code.” The first product from this platform, Nextida GC, offers a compelling glimpse into this strategy. Launched in 2024, Nextida GC is formulated to help manage post-meal glucose spikes by naturally stimulating the body's production of GLP-1, a hormone central to metabolic regulation. This positions the company to compete in the highly lucrative market for metabolic health and blood sugar management, tapping into a major consumer health concern.

This focus on targeted, condition-specific formulations moves the company far beyond the commodity ingredient space and into the high-margin world of branded, science-backed nutraceuticals. By combining the R&D capabilities of both Rousselot and PB Leiner, the new venture can accelerate the development and commercialization of future Nextida products, creating a portfolio of proprietary ingredients that are difficult for competitors to replicate. This innovation engine is the key to transforming sheer market size into sustained market leadership and profitability.

Reshaping the Global Market

The creation of this collagen colossus will inevitably send ripples across the competitive landscape, challenging established players like Germany’s Gelita AG and Japan’s Nitta Gelatin. The combined entity’s control over a significant portion of the global supply will give it substantial influence over pricing and product availability. Customers may benefit from a more streamlined, one-stop-shop supplier, but competitors will face a far more formidable rival with unparalleled scale and a burgeoning innovation pipeline.

However, the deal is not yet complete. The transaction is slated for a 2026 closing, contingent upon navigating the complex web of international regulatory approvals. Antitrust authorities in key jurisdictions like the European Union and the United States will undoubtedly scrutinize a merger that concentrates so much of the global collagen and gelatin market under a single corporate umbrella. While both Darling and Tessenderlo are likely confident in a positive outcome, the regulatory process remains the most significant hurdle to realizing their shared vision.

Ultimately, this transaction is a bold and decisive bet on the future of nutrition. It leverages Darling Ingredients’ foundational strength in by-product valorization—a cornerstone of the circular economy—to fuel a sophisticated, consumer-facing health and wellness enterprise. By combining scale, financial ingenuity, and cutting-edge science, Darling and Tessenderlo are not just building a new company; they are constructing a dominant platform intended to lead the global wellness market for years to come.