UK-based flavours and fragrance ingredients supplier Natara Global has agreed to acquire Treatt, a manufacturer of natural extracts and ingredients, for £156.6m.
The agreement aims to combine the two companies in an all-cash deal to create a global ingredients platform in the flavour and fragrance sector.
Natara is backed by private equity firm Exponent, which acquired the company in 2023. Treatt and Natara will leverage their respective strengths with the latter focusing on speciality-based aromas and the former on high-value natural ingredients.
Their combination is expected to enhance operational capabilities and expand geographic reach across markets in the UK, Europe, North America, and Asia.
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 collaboration is expected to advance innovation and widen the product portfolio available to customers across crucial markets.
Also, it offers significant strategic advantages, including a unified global salesforce and advanced facilities, which could not be achieved independently.
Since its acquisition by Exponent, Natara is said to have seen growth through investments aimed at enhancing customer partnerships and manufacturing capabilities.
As per the terms of the deal, Treatt’s shareholders will get 260p per share. Treatt is currently listed on the London Stock Exchange. The deal is anticipated to closed during the course of this year, subject to certain conditions such as approval of Treatt’s shareholders and court and regulatory clearances.
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.”
Earlier this year, Natara signed an exclusive distribution agreement with Vigon International, a US-based speciality ingredient supplier.
The partnership enables Vigon to distribute Natara’s sustainable botanical extracts and speciality molecules to customers in North America.
