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A major consolidation in the global health and wellness ingredient sector is underway, as Darling Ingredients and Tessenderlo Group have entered into a definitive agreement to merge their gelatin and collagen operations.

The joint venture is poised to create a massive new entity with projected annual revenues of approximately $1.5 billion. By combining Darling’s established Rousselot brand with Tessenderlo’s PB Leiner business, the partners aim to capitalize on the surging global appetite for collagen-based products, a trend driven by increasing consumer focus on health and well-being.

Strategic Market Positioning

The decision to merge comes as the global collagen market experiences significant expansion. With collagen increasingly becoming a staple in functional foods, beverages, and dietary supplements, the new company is strategically positioned to leverage this consumer shift.

Randall C Stuewe, chairman and CEO of Darling Ingredients, highlighted the growth potential of the deal: “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.”

Operational Footprint and Scale

The combined entity will boast a substantial production capacity of roughly 200,000 metric tons across 22 facilities. These operations span four continents—North America, South America, Europe, and Asia—creating a robust global network.

Both firms bring significant weight to the partnership. Darling Ingredients is a dominant force in the sector, currently processing approximately 15% of the world’s animal agricultural by-products and responsible for producing roughly 30% of the world's collagen. Meanwhile, Tessenderlo Group contributes deep experience in bio-residual valorisation and industrial solutions, supported by extensive operations in over 100 countries.

Deal Structure and Timeline

Under the terms of the agreement, which requires no initial cash investment, Darling Ingredients will retain a majority 85% ownership stake in the new company, with Tessenderlo holding the remaining 15%.

Subject to customary regulatory approvals, the merger is scheduled to be finalised in 2026.