Rousselot and PB Leiner consolidate collagen and gelatin production

Darling Ingredients and Tessenderlo Group have signed a definitive agreement to combine the collagen and gelatin segments of their companies, Rousselot and PB Leiner, into a new, collagen-based nutrition company. 

With the move, which was first announced last May, the companies aim to capitalize on global collagen growth. They note that no cash or initial investment is required from either company. 

Darling Ingredients will hold a majority ownership stake of 85% in the new company, with Tessenderlo Group holding the remaining 15%.

The transaction is expected to close in 2026, pending regulatory approvals.

The new company is expected to have an initial annual revenue of approximately US$1.5 billion. It will have a total gelatin and collagen capacity of around 200,000 metric tons, with 22 facilities in South America, North America, Europe, and Asia.

Collagen-based wellness company

The parties note that over time, the integration provides opportunities to realize synergies and develop Rousselot’s Nextida product portfolio. These bioactive collagen peptides, such as Nextida GC for metabolic wellness, are specifically designed to deliver targeted health benefits.

The companies note these products “provide a significant opportunity to increase earnings.”

“This strategic partnership is expected to create new opportunities for growth, while expanding options to enhance shareholder value for Darling Ingredients,” says Randall C. Stuewe, chairman and CEO of Darling Ingredients.

“Collagen continues to be the fastest-growing part of our food segment, and with PB Leiner’s team, assets, and product portfolio, we are well-positioned to accelerate innovation, scale, and growth in this dynamic market.” 

Luc Tack, CEO of Tessenderlo Group, adds: “This final agreement is an important step forward in building a stronger future for our partnership.”