Darling Ingredients Acquires Valley Proteins


In a December 29th announcement, Darling Ingredients has agreed to purchase Valley Proteins in a transaction valued at $1.1 billion.  The product range of the Company is based on used cooking oil and animal parts from the approximately twenty Valley Protein rendering and refining plants. These items will complement proteins and fats produced by Darling Ingredients. The acquiring company markets hydrolyzed collagen, feed-grade fats and animal by-products used in livestock feed, pet food and the bioenergy sector but is moving to low-carbon feedstock for renewable diesel fuel.


Darling Ingredients (DAR) has a market capitalization of $11 billion and has traded in a fifty-two-week range of $56.16 to $85.98 with a fifty-day moving average of $72.89.  The company trades at a forward P/E of 12.1.  On a trailing twelve-month basis, operating margin was 9.9 percent and profit margin 12.1 percent.  The company has generated a return on assets of 4.9 percent and 17.9 percent on equity.  DAR closed at $66.50 on Wednesday, December 28th prior to the announcement and traded higher on Wednesday, December 29th closing at $67.81 up 1.9 percent.