Darling International Inc. (DAR), Valero Energy Corporation (VLO): One Mammoth Acquisiton for This Biodiesel Stock

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Two takeaways from today’s news
In the end, though, Darling International Inc. (NYSE:DAR) shareholders have learned two significant things from today’s acquisition announcement.

First, while the new Rothsay biodiesel plant is significantly smaller than the Darling/Valero Energy Corporation (NYSE:VLO) DGD operation, this at least shows Darling International Inc. (NYSE:DAR) is serious about expanding its reach in the space. This, in turn, can’t sit well with existing biodiesel leaders such as Renewable Energy Group Inc (NASDAQ:REGI), which itself just completed a biodiesel acquisition of its own, with the 30 million gallon-per-year Mason City plant. That brings the annual capacity of Renewal Energy Group’s eight biodiesel plants to over 257 million gallons.

However, considering Darling International Inc. (NYSE:DAR)’s DGD plant alone can output more than half that amount, any concerted effort by Darling to truly continue boosting its presence in biodiesel could be a significant threat to more established players in the space.

Second, this is Darling International Inc. (NYSE:DAR)’s first international expansion, growing on its existing domestic footprint of 130 locations in 42 U.S. states.

In the end, considering the absolutely necessary long-term nature of the solidly profitable core rendering businesses Darling International Inc. (NYSE:DAR) operates, there’s no reason the company shouldn’t continue to handsomely reward shareholders while it grows stronger with each passing year.

The article 1 Huge Acquisiton for This Biodiesel Stock originally appeared on Fool.com.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Darling International. 

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