Darling International to acquire biodiesel maker for USD 840m
(ADPnews) - Nov 15, 2010 - US recycling company Darling International (NYSE:DAR) will take over Kentucky-based rendering and biodiesel maker Griffin Industries Inc for USD 840 million (EUR 613m) to be paid in cash and stock.
The company's management board approved the acquisition last week taking into consideration that Griffin possesses 12 rendering plants, 9 bakery by-product plants and biodiesel production facility in Butler, Kentucky. The purchase is due by mid-December 2010.
According to Darling's chairman and CEO Randall Stuewe, who spoke during a conference call to discuss the merger, the acquisition will benefit the company's green diesel joint venture (JV) previously announced with a subsidiary of refinery Valero Energy Corp (NYSE:VLO).
The tie-up, announced in September 2009, was created to develop a facility capable of producing 135 million gallons (511 million litres) of renewable diesel annually. The plant would use waste grease, such as animal fats and used cooking oil, provided by Darling.