Darling to acquire Rothsay rendering business

Darling International has entered into a definitive agreement to acquire Rothsay, the rendering division of Maple Leaf Foods.

Darling International Inc., a provider of rendering, recycling and recovery solutions to the nation's food industry, announced Aug. 23 that it has entered into a definitive agreement to acquire all of the assets of Rothsay, a division of Maple Leaf Foods Inc., for approximately $645 million (Canadian) in cash.

Rothsay is a leading recycler of animal byproducts in Canada and provides an essential service for the efficient and environmentally responsible collecting, processing and recapturing of edible and inedible byproducts. Rothsay processes raw materials into finished products of fats and proteins. These finished products are sold in domestic and international markets including the U.S., Europe, Mexico and South America. Rothsay also manufactures biodiesel for domestic and international markets.

Rothsay has a network of five rendering plants in Manitoba, Ontario and Nova Scotia and a biodiesel operation in Quebec. Rothsay employs approximately 550 people and generated approximately $85.0 million (Canadian) of earnings over each of the past two fiscal years.

Randall C. Stuewe, Darling International chairman and chief executive officer said, "The combination of our two companies will create North America's leading provider of independent rendering and recycling services. The opportunity to add Rothsay to our North American platform is an exceptional honor. Rothsay is Canada's premier recycler of animal byproducts and a leading biodiesel manufacturer. We look forward to joining forces with Rothsay's management team and employees and to the opportunity this brings our shareholders for future growth."

Darling expects to finance the transaction through a combination of borrowings under a new senior secured revolving credit facility and term A bank loan facility, which will be entered into in connection with the closing of the transaction.

Closing of the transaction is subject to customary closing conditions, including Canadian Competition Bureau review.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.