(SeeNews) - Aug 26, 2013 - US food waste recycler Darling International Inc (NYSE:DAR) will acquire Rothsay, the operator of a biodiesel plant in Quebec and five rendering facilities in Manitoba, Ontario and Nova Scotia, for CAD 645 million (USD 614m/EUR 459m).
Currently, the target company is owned by Canadian firm Maple Leaf Foods Inc (TSE:MFI). The latter said on Friday that it would use the proceeds to pay back debt and support its core consumer packaged food division. It may also return capital to shareholders.
In 2012 animal by-products recycling specialist Rothsay booked earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD 85 million. It processes raw materials into finished products of fats and proteins and sells them at home and abroad. Rothsay also makes biodiesel for the Canadian and international markets.
Darling intends to pay for the buy with borrowings under a revolving credit line and a term A bank loan, it said. The acquisition is to be concluded by the end of the current year, subject to regulatory approvals.
(CAD 1 = USD 0.952/EUR 0.712)