23 August 2013 16:28 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Canadian food processor Maple Leaf Foods agreed to sell its rendering and biodiesel business to Darling International for about Canadian dollars C$645m ($614m) in cash, the companies announced on Friday.
The sale to Texas food waste recycling company Darling allows Maple Leaf to focus on boosting profits in selling packaged foods to consumers and effectively deploying capital, Maple Leaf chief executive Michael McCain said in a statement on Friday.
"We are delighted to have concluded almost a year-long process with an agreement with Darling, the North American leader in food waste recycling," said McCain. "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."
Darling CEO Randall Stuewe said the deal made the company North America's leading provider of rendering and recycling services.
Rothsay, Maple Leaf's rendering and biodiesel business, operates six rendering plants in Manitoba, Ontario, Quebec and Nova Scotia and a biodiesel facility in Quebec.
Darling is the largest and only publicly traded provider of rendering and bakery residuals recycling solutions to the US food industry.
The company recycles beef, poultry and pork by-product streams into useable ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal and hides.
The company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients.
These products are primarily sold to agricultural, pet food, leather, oleochemical and biodiesel manufacturers around the world.
Biodiesel is an alternative fuel, produced from renewable resources. The most commonly used feedstocks are rapeseed, soy and palm oil.
($1 = C$ 1.05)
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