Darling Ingredients stock falls after $1.2 billion cash deal to buy collagen producer Gelnex
Shares of Darling Ingredients Inc. fell 0.9% in premarket trading Tuesday, after the producer of natural ingredients from edible and inedible bio-nutrients announced a deal to buy collagen producer Gelnex for $1.2 billion in cash. The deal is expected to close in the first quarter of 2023. Brazil-based Gelnex produces about 46,000 metric tons of collagen products a year, and exports them to more than 60 countries. ""Collagen is the most abundant protein naturally found in the body, and it plays an increasing role in the health and nutrition market by consumers seeking benefits to their hair, nails, skin, joints, bones and muscles," said Darling Chief Executive Randall Stuewe. "Our versatile and high-quality collagen products can be used in a broad range of applications, including powder blends, capsules, tablets, nutritional bars, drinks, dairy, confectionery and more." Darling's stock decline ahead of the open comes despite futures for the S&P 500 surging 2.3%.
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