Texas-based rendering leader Darling International Inc. is buying all the assets of Canadian company Rothsay, a division of Maple Leaf Foods Inc. for approximately CAD $645 million in cash. This Darling news release says the deal includes machines to turn fats and proteins into biodiesel feedstocks, as well as an actual biodiesel operation itself.
Rothsay has a network of five rendering plants in Manitoba, Ontario and Nova Scotia and a biodiesel operation in Quebec, Canada. Rothsay employs approximately 550 people and generated approximately CAD $85.0 million of EBITDA over each of the past two fiscal years.
Randall C. Stuewe, Darling International’s Chairman and CEO said, “The combination of our two companies will create North America’s leading provider of independent rendering and recycling services. The opportunity to add Rothsay to our North American platform is an exceptional honor. Rothsay is Canada’s premier recycler of animal by-products and a leading biodiesel manufacturer. We look forward to joining forces with Rothsay’s management team and employees and to the opportunity this brings our shareholders for future growth.”
Earlier this summer, Darling opened a joint venture renewable diesel plant with energy giant Valero in Louisiana. That plant also uses animal fat to make the renewable diesel, as well as using waste cooking oil and corn oil.