Darling International (NYSE: DAR ) has gone overseas for its latest asset buy. The company announced it has reached agreement to buy the majority of shares in Netherlands-based food concern Vion Ingredients, a subsidiary of Vion Holdings. The price is roughly 1.6 billion euros ($2.2 billion) in cash.
Vion Ingredients "is a worldwide leader in the development and production of specialty ingredients from animal origin for applications in pharmaceuticals, food, feed, pet food, fertilizer and bio-energy," in Darling's words. Vion Ingredients employs around 5,700 people and saw revenues of nearly 1.7 billion euros ($2.3 billion) and EBITDA of approximately 210 million euros ($285 million) in the 12 months that ended this past June 30.
In the press release announcing the news, Darling waxed enthusiastic about the synergistic effects of its latest buy. It quoted its CEO Randall Stuewe as saying that the acquisition "will create the global leader in converting edible and inedible bio-nutrients streams into specialty products and ingredients for the food, feed, fuel, fertilizer and pharmaceutical industries."
Darling will finance the purchase with a mix of debt and equity. It expects Vion Ingredients to be "immediately accretive" to its per-share earnings. The acquisition is anticipated to close in January 2014.
At the end of its most recently reported quarter, Darling had $134 million in cash and short-term investments.