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Darling Ingredients Ditches Diesel Drama for Collagen Control—Smart Move?

Darling Ingredients has announced a definitive agreement to merge its Rousselot collagen and gelatin business with Tessenderlo Group’s PB Leiner unit, forming a new joint venture expected to close in 2026. This deal—structured with no upfront cash or investment—will see Darling holding an 85% stake and Tessenderlo the remaining 15%. The combined entity will command approximately $1.5 billion in annual revenue and boast a 200,000 metric ton capacity across 22 facilities worldwide. This move comes as Darling navigates mixed market dynamics: a strong core ingredients segment, but continued headwinds in its renewable fuels business, including a negative EBITDA from its Diamond Green Diesel (DGD) JV and regulatory delays surrounding Renewable Volume Obligations (RVO). In this context, the PB Leiner combination signals Darling’s strategic focus on de-risking from volatile fuel markets and reinforcing its strength in value-added ingredients.