Valley Proteins acquisition to give Darling more recycled feedstock for renewable diesel growth
Darling Ingredients Inc. announced Dec. 28 that it entered into a definitive agreement to acquire all of the shares of Valley Proteins Inc. for approximately $1.1 billion in cash. Valley Proteins operates 18 major rendering and used cooking oil facilities throughout the South, Southeast and Mid-Atlantic regions of the U.S. Valley employs 1,900 employees and operates a fleet of 550 vehicles.
“We are pleased to add Valley Proteins to our global ingredient family and we expect this acquisition to be accretive post-integration,” said Randall C. Stuewe, chairman and CEO of Darling. “In the evolving world of ESG (environmental, social and corporate governance) and global decarbonization, Valley Proteins will supplement Darling’s global supply of waste fats and greases. The new supply will now provide Darling with additional low-carbon feedstock to produce renewable diesel and potentially sustainable aviation fuel. Valley Proteins has a rich 70-plus-year history of providing essential services to the meat processing industry and restaurant locations and our teams will work diligently to complete this acquisition in a timely manner.”
Closing of the transaction is subject to customary conditions, including the expiration of the Hart-Scott-Rodino waiting period.
Diamond Green Diesel, the renewable diesel joint venture between Darling and Valero, recently completed a major expansion at its Norco, Louisiana, manufacturing facility, raising production capacity from 290 million gallons per year (mgy) to 690 mgy. Its 470 mgy project in Port Arthur, Texas, is expected to be complete in 2023. Once finished, Diamond Green Diesel will have the ability to produce around 1.2 billion gallons of renewable diesel per year.