Darling Ingredients Inc. Completes Acquisition of Polish Rendering Company Miropasz Group

Rhea-AI Summary

Darling Ingredients Inc. (NYSE: DAR) has completed the acquisition of Polish rendering company, Miropasz Group, for a purchase price of €110 million. Miropasz processes approximately 250,000 metric tons of poultry by-products annually through three poultry rendering plants in southeast Poland and has approximately 225 employees. The acquisition is aimed at expanding Darling's worldwide supply of low-carbon feedstocks and integrating with its existing plants in central and western Poland.

Market Research Analyst

The completion of the acquisition of Miropasz Group by Darling Ingredients Inc. represents a strategic expansion within the European market, particularly in Poland, which is a significant player in poultry production. This move not only increases Darling Ingredients' operational footprint but also enhances its supply chain for low-carbon feedstocks, a critical component in the production of sustainable products and renewable energy.

An analysis of this acquisition reveals potential for increased market share and revenue growth for Darling Ingredients. By integrating Miropasz's processing capacity of approximately 250,000 metric tons of poultry by-products annually, Darling Ingredients can expect to bolster its raw material supply, which is vital for maintaining production levels and meeting the rising demand for sustainable products. Furthermore, the acquisition could lead to improved economies of scale and cost efficiencies in the long run.

Financial Analyst

The financial implications of the acquisition, with a purchase price of €110 million, should be scrutinized in relation to Darling Ingredients' overall financial health and investment strategy. The impact on Darling Ingredients' balance sheet and cash flows will be a key focus for investors and analysts alike. It is essential to evaluate the acquisition's potential return on investment, considering the additional revenue streams and cost synergies. Moreover, the acquisition could affect Darling Ingredients' leverage and liquidity ratios, which are important indicators of financial stability.

Investors will also be interested in the acquisition's contribution to earnings per share (EPS) and whether it will be accretive or dilutive in the short-term. Long-term financial benefits, such as increased market penetration and the potential for cross-selling opportunities with existing operations, must be weighed against the initial capital outlay and integration costs.

Sustainability Expert

Darling Ingredients' acquisition of Miropasz Group aligns with the broader industry trend towards sustainability and the circular economy. The company's focus on converting food waste into sustainable products is not only environmentally responsible but also increasingly demanded by both consumers and regulators. This strategic move could enhance Darling Ingredients' reputation as a leader in sustainability and potentially open up new markets that prioritize eco-friendly practices.

From a sustainability perspective, the expansion of Darling Ingredients' low-carbon feedstock supply is significant. It contributes to the reduction of greenhouse gas emissions by utilizing by-products that would otherwise go to waste. The integration of Miropasz's operations could also lead to advancements in rendering technology and processes, further solidifying Darling Ingredients' position as an innovator in the industry.

IRVING, Texas, Jan. 31, 2024 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), the world's leading company turning food waste into sustainable products and producer of renewable energy, today announced it has completed the acquisition of Polish rendering company, Miropasz Group.

The company first announced its plans to acquire Miropasz in November 2022 for a purchase price of €110 million, plus or minus closing costs. Miropasz processes approximately 250,000 metric tons of poultry by-products annually through three poultry rendering plants in southeast Poland (Mirowice, Pszczonow and Krasnystaw) and has approximately 225 employees. 

"As Poland continues to take a pivotal role in poultry production to feed our world, Darling Ingredients is committed to providing essential services as our customers grow," said Randall C. Stuewe, Chairman and Chief Executive Officer of Darling Ingredients. "This acquisition seamlessly integrates with Darling's existing three plants in central and western Poland and underscores our dedication to expanding our worldwide supply of low-carbon feedstocks."

About Darling
Darling Ingredients Inc. (NYSE: DAR) is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Recognized as a sustainability leader, the company operates more than 270 plants in 17 countries and repurposes approximately 15% of the world's meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertilizer, animal proteins and meals and pet food ingredients. To learn more, visit darlingii.com. Follow us on LinkedIn.

Darling Ingredients Contacts

Investors:        
Suann Guthrie
Senior VP, Investor Relations, Sustainability & Communications
(469) 214-8202; suann.guthrie@darlingii.com      

Media:             
Jillian Fleming
Director, Global Communications
(972) 545-7115; jillian.fleming@darlingii.com 

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SOURCE Darling Ingredients Inc.

What is the ticker symbol for Darling Ingredients Inc.?

The ticker symbol for Darling Ingredients Inc. is DAR.

What is the purchase price for the acquisition of Miropasz Group?

The purchase price for the acquisition of Miropasz Group is €110 million, plus or minus closing costs.

How many employees does Miropasz Group have?

Miropasz Group has approximately 225 employees.

How much poultry by-products does Miropasz Group process annually?

Miropasz Group processes approximately 250,000 metric tons of poultry by-products annually.

Where are the poultry rendering plants of Miropasz Group located?

The poultry rendering plants of Miropasz Group are located in southeast Poland, specifically in Mirowice, Pszczonow, and Krasnystaw.