The board of directors of Darling International, Inc., has unanimously approved a merger agreement to acquire Griffin Industries, Inc., for a combination of cash and stock valued at approximately $840 million.
Founded in 1943 by John and Rosellen Griffin, Griffin Industries, based in Cold Spring, KY, has 55 locations throughout the southeast United States that include 12 rendering plants, nine bakery by-product plants, and one biodiesel facility. The company employs nearly 1,400 people in 18 states and produces products for the pet food, animal feed, industrial/chemical, petroleum, leather, and fertilizer industries. Griffin Industries will operate as a wholly-owned subsidiary of Darling International under the continued leadership of the Griffin family and its management team.
Pursuant to the terms of the agreement, Darling will pay Griffin’s shareholders an aggregate purchase price of $840 million, of which $740 million is payable in cash and approximately $100 million is payable in Darling common stock. Darling expects to finance the transaction through a combination of borrowings under a senior secured credit facility to be entered into in connection with the closing of the transaction, the proceeds from senior unsecured notes to be sold on or prior to the closing date of the transaction, and cash on hand.
It is anticipated the transaction, which is subject to customary closing conditions, will close by mid-December.
Darling International is the largest publicly traded food processing by-products recycling company in the United States. The renderer recycles used restaurant cooking oil and by-products from the beef, pork, and poultry processing industries into useable products such as tallow, feed-grade fats, meat and bone meal, and hides. With the acquisition of Griffin Industries, the organization will operate 136 facilities in 42 states and employ approximately 3,200 people.
December 2010 RENDER | back