August 23, 2013 | Darling International, Inc., the largest and only publicly-traded provider of rendering, recycling, and recovery solutions in the United States, has entered into a definitive agreement to acquire all of the assets of Rothsay, a division of Maple Leaf Foods, Inc. for approximately $645 million (CAD) in cash. The transaction is expected to close by the end of 2013, subject to regulatory approvals.
Rothsay is the leading recycler of animal by-products in Canada and manufactures biodiesel for domestic and international markets. The company has a network of five rendering plants in Manitoba, Ontario, and Nova Scotia with its biodiesel operation in Quebec, Canada. Rothsay employs approximately 550 people and generated approximately $85 million (CAD) of earnings before interest, taxes, depreciation, and amortization over each of the past two fiscal years. Maple Leaf plans to enter into a long-term contract with Darling to receive by-products recycling services at competitive market rates.
“The sale of our rendering and biodiesel business supports our strategy to focus on effective capital deployment and profitable growth in the consumer packaged foods market,” said Michael McCain, president and chief executive officer (CEO) of Maple Leaf Foods. “We are delighted to have concluded almost a year-long process with an agreement with Darling, the North American leader in food waste recycling. The sale will support future investments in our consumer facing businesses and allow Darling to build on Rothsay’s strong capabilities and deep customer relationships.”
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.”
Maple Leaf Foods Inc. is a leading food company headquartered in Toronto, Canada. The company employs approximately 19,500 people at its operations across Canada and in the United States, the United Kingdom, and Asia. Maple Leaf had sales of $4.9 billion in 2012.