Darling Ingredients & Tessenderlo Form Venture Targeting Booming Collagen Market
Nextida will unite the companies’ collagen and gelatin operations into a $1.5 billion venture with 23 facilities
Darling Ingredients Inc. and Belgium’s Tessenderlo Group are joining forces to create a new collagen-focused company as demand surges for health and wellness products tied to the popular protein.
The firms have signed a non-binding term sheet to merge their collagen and gelatin businesses into a new entity called Nextida. The deal, which requires no cash or initial investment from either party, remains subject to definitive agreements.
The deal is expected to close in 2026.
Pending regulatory approval, Darling Ingredients will hold a majority 85% stake in Nextida, with Tessenderlo Group retaining the remaining 15%. The venture will merge Darling’s Rousselot-branded collagen and gelatin operations with Tessenderlo’s PB Leiner business, creating a global player with an initial estimated annual revenue of $1.5 billion.
“By working with Tessenderlo Group over the last several months, we have developed a great opportunity that will allow us to establish a new company that provides a strong platform for accelerated product development and growth,” Darling Ingredients chairman and CEO Randall C. Stuewe said. “Collagen has represented the fastest-growing area of Darling Ingredients’ food segment business over the past several years, and with the addition of PB Leiner’s people, assets and products, we are well positioned to increase scale and focus in this rapidly growing segment.”
Nextida will operate 23 facilities across South America, North America, Europe and Asia, with a combined gelatin and collagen capacity of roughly 200,000 metric tons. The companies said the integration will expand Nextida’s portfolio of health-focused products, providing a pathway to increased earnings.
“With this combination, we will have the best new ownership possible,” Tessenderlo Group CEO Luc Tack said. “We will benefit from each other by sharing technology expertise and providing a complementary offering for our global customer base. This includes many in-demand products, such as gelatin and collagen peptides.”
Collagen products have emerged as a rapidly rising segment of the wellness industry, driven by consumer interest in products tied to hair, skin, nail and joint health. The category also aligns with the broader longevity market, as the body’s natural collagen production declines with age.
Luxury athletic country cub operator Life Time recently added the Refuel Protein Bar to its LTH supplement line, featuring 15 grams of protein from dairy-free grass-fed collagen and pea protein sources. The new launch follows LTH’s Rewind Collagen Elixir, an individually portioned berry sorbet-flavored daily shot, and LTH Prime Collagen Peptides, a sustainably sourced protein powder made from grass-fed pastured cows.