US-based natural ingredients provider Darling Ingredients and Belgian Chemicals company Tessenderlo Group have signed a non-binding term sheet to merge their collagen and gelatin segments into a new company, dubbed Nextida.
In the new joint venture, which aims to expand the global collagen market, Darling Ingredients will hold an 85% stake, while Tessenderlo Group will own 15%.
Nextida will combine Darling Ingredients’ Rousselot business with Tessenderlo Group’s PB Leiner, creating a company with an estimated annual revenue of $1.5bn.
The new entity will have a total gelatin and collagen capacity of approximately 200,000 metric tons across 23 facilities in Asia, Europe, North America, and South America.
The collaboration is expected to enhance infrastructure and geographical reach, meeting the rising demand for collagen products.
The integration aims to optimise commercial and logistical operations, achieving significant synergies and operational efficiencies without additional infrastructure investment.
The transaction, pending regulatory approvals, is anticipated to conclude in 2026.
The partnership is set to unlock growth opportunities and enhance shareholder value through the expanded Nextida product portfolio.
Darling Ingredients chairman and CEO Randall Stuewe said: “By working with Tessenderlo Group over the last several months, we have developed a great opportunity that will allow us to establish a new company that provides a strong platform for accelerated product development and growth.
“Collagen has represented the fastest-growing area of Darling Ingredients’ food segment business over the past several years, and with the addition of PB Leiner’s people, assets and products, we are well positioned to increase scale and focus in this rapidly growing segment.”
Tessenderlo Group CEO Luc Tack said: “With this combination, we will have the best new ownership possible. We will benefit from each other by sharing technology expertise and providing a complementary offering for our global customer base. This includes many in-demand products, such as gelatin and collagen peptides.”
