|
Treatt PLC on Monday recommended shareholders approve a raised takeover offer from Natara Global Ltd, valuing Treatt at £173.8 million. This comes after the Suffolk, England-based extracts and ingredients manufacturer agreed to an all-cash acquisition by Natara early last month. Natara boosted its offer by 12% to 290 pence per share from its initial offer of 260p. This values Treatt at about £173.8 million, up from £156.6 million previously. Treatt shares rose 2.1% to 278.60 pence on Monday morning in London. Its shares have risen 5.1% over the past month. Natara makes ‘aroma ingredients’ for the flavour and fragrance sectors. It is based in Hartlepool, England and majority-owned by the UK and European private equity firm Exponent. The suitor said on Monday that it had commitments to accept the offer from Treatt shareholders holding a combined 4.21% of the company. The deal requires a minimum 75% approval vote before it can be sanctioned by the court and proceed. Treatt has advised that shareholders accept the offer at a general meeting on November 3, with the court meeting scheduled for the same day. Treatt expects the deal to close in 2025. Darmstadt, Germany-based peer Dohler Group SE at the end of September raised its stake in Treatt to 10% from about 2.9%. The German firm said it was not considering a takeover offer of its own and would remain bound to this by the UK Panel on Takeovers & Mergers. Also at the end of last month, Treatt’s chief financial officer, Ryan Govender, left the company to become CFO of Johnson Service Group PLC. Manprit Randhawa has joined Treatt as interim CFO from fellow London listing SkinBioTherapeutics PLC. Natara’s initial approach came after Treatt lowered its outlook for the year that ended September 30, citing a second-half sales slowdown, ‘competitive pressure’, lower US consumer confidence and currency headwinds, as well as ‘sustained high citrus prices’. Treatt expects full-year revenue between £130 million and £135 million, versus £153.1 million in 2024 and previous guidance between £146 million and £153 million. Pretax profit before exceptional items is expected to be between £9 million and £11 million, down from £19.1 million the year before and prior guidance for financial 2025 of £16 million to £18 million. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
