Vion reaches agreement with Darling

by Editor fleischwirtschaft.com
Tuesday, October 08, 2013

Vion has announced that a final agreement has been reached on the proposed sale of its Ingredients division.

The latter has been acquired by industry colleague Darling International from the US. Darling International will pay approximately €1.6 billion in cash for the full acquisition.

Both companies complement one another fabulously both geographically and as far as their activities are concerned. Darling International is strong in the U.S., whilst the Ingredients division has leading positions primarily in Europe and around the world.

Vion Ingredients

Vion Ingredients, part of Vion N.V., operates in Europe and worldwide with 58 companies developing, processing and selling added value products from slaughterhouse by-products. These products such as gelatine, proteins and fats are successfully sold to a variety of B2B markets such as the pharmaceutical, cosmetics, food, feed, energy and technology industries. On the market, Ingredients is primarily known through its brands Ecoson, Rendac, Sonac, Rousselot and CTH. Ingredients, with its head office in Son, in the South of the Netherlands, employs approximately 5,700 staff.

Finances


The proceeds of the intended sale of Ingredients will normalise the debt position of Vion Holding N.V. and strengthen its equity. As already announced on 24 April 2013, as a one off the 2012 results were strongly influenced particularly by one off impairments (writing off of value), primarily with regard to former activities in the UK. In addition, further write downs were also taken in relation to other tangible and intangible assets, interest costs were high and the company accumulated substantial costs in connection with its restructuring.

All in all, this has led to a net result last year amounting to approximately €830 million negative as opposed to €14 million positive in 2011. This led to a decrease in equity in 2012 to approximately €100 million negative. Due to the sale of Ingredients, Vion's equity is now making a strong recovery and will total approximately €400 million positive.
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