Scotland-based Devro says the acquisition will make it a leading global collagen gel supplier for co-extrusion by combining PVI’s gel sales in Europe and Japan with Devro’s gel supply from its US plant.
Co-extrusion is not a new technology, but the company said significant growth opportunities have emerged in the past few years, as hotdog manufacturers have sought to replace cellulose with collagen. The company claims collagen incurs lower costs, less labour, greater food safety and reduced waste.
“This acquisition supports Devro’s strategy by growing sales of collagen products through product differentiation and enhancing value for customers,” said Devro plc’s group finance director Simon Webb in a statement. “It will strengthen our presence in Europe, extending our product knowledge and technical expertise in a specialist sector.”
The company said it intended to continue supplying collagen gel from both the European and US plants to improve security of supply and combine expertise.
The deal, which is subject to clearance by EU authorities, could also involve a €1m additional payment under an earn-out arrangement.