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Natara to buy extracts and ingredients specialist Treatt in £156.6m deal

(Sharecast News) - Treatt shares surged on Monday after the extracts and ingredients specialist said it has agreed to be taken over by Natara in a £156.6m deal. Under the terms of the agreement, Natara will pay 260p per share in cash, which is a premium of about 16.1% to the closing Treatt share price on Friday.

Natara, whose majority shareholder is UK and European private equity firm Exponent, is a global manufacturer of aroma ingredients products.

Treatt chair Vijay Thakrar said: "Treatt has many opportunities for growth ahead. While we have a clear strategy to capture these growth opportunities, a combination with Natara would provide the investment and scale that will enable us to do this faster, more extensively, and with lower execution risk than we could achieve on a standalone basis.

"It would bring together two highly complementary businesses and expand our reach and product offering significantly - positioning Treatt, our people, and our customers for long-term success.

"The board believes that the proposed offer from Exponent and Natara is fair and reasonable, and an opportunity for Treatt's shareholders to realise their entire investment with certain value in cash. Accordingly, the board unanimously recommends the offer."

Natara CEO Yoram Knoop said: "With the support of Exponent, Natara has been investing for growth since 2023. By combining with Treatt, we will be strongly positioned to continue our growth journey.

"The combination of Natara and Treatt will bring together two complementary businesses, expanding our product portfolio, accelerating our capability in innovation and delivering an enhanced customer proposition globally. The combination also will create more opportunities for each companies' teams, with greater capacity for collaboration and investment in talent.

"Together, we can unlock the long-term growth within Treatt's business by providing the required investment, additional operational expertise, and flexibility that comes with private ownership."

At 0810 BST, the shares were up 21% at 272p.

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