Biodiesel and rendering company set to be bought in Canada

Darling International, a provider of rendering, recycling and recovery solutions to the US food industry, has entered into a definitive agreement to acquire all of the assets of Rothsay, a division of Maple Leaf Foods, for approximately CA$645 million (€459 million) in cash.

Rothsay is a biodiesel producer and recycler of animal by-products in Canada by processing raw materials into finished products of fats and proteins. These finished products are sold in domestic and international markets, as does its biodiesel.  It has five rendering plants and one biodiesel operation and has generated approximately $85 million of EBITDA over each of the past two fiscal years.  

‘The combination of our two companies will create North America’s leading provider of independent rendering and recycling services,’ says Darling CEO Randall Stuewe, ‘as Rothsay is Canada’s premier recycler of animal by-products and a leading biodiesel manufacturer.’

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.