Shares in Treatt have jumped by over 45% after it agreed to a £183m offer from German multinational firm, Döhler, to acquire the remaining shares it does not already own.

Under the deal, Treatt shareholders will be entitled to receive £3.05 in cash for each share, which represents a 48% premium on the ingredients manufacturer’s share price at closing yesterday.

The German firm said it has a "deep understanding" of Treatt’s business after working closely with the British manufacturer over many years as a strategic supplier and customer. As a result, it added that these insights have allowed it to develop a "differentiated perspective" on the company.

Döhler stated that both firms operate in “adjacent and complementary” segments of the natural ingredients, creating a stronger and more competitive platform.

Furthermore, the deal is set to combine Treatt’s expertise in high-performance natural extracts with the German firm’s technology-driven ingredients systems. This will be supported by Treatt’s “strategically attractive” US production footprint and the expected immediate cost-selling opportunities across new geographies and strategic accounts.

The British group’s board has recommended that its shareholders vote in favour of the acquisition, which is set to complete in Q3.

Chief marketing officer at Döhler, Martin Tolksdorf, said that the group has "long admired Treatt as a high-quality business with a rich heritage of product excellence, strong customer relationships and a deep-rooted culture of innovation".

He added: "Having worked closely with Treatt over many years as a strategic supplier and customer, we are excited at the prospect of expanding our partnership with Treatt.

"As a family-owned business founded over 185 years ago, the Döhler Group has a long term approach to ownership, and we firmly believe that bringing Treatt into the Döhler Group represents a natural and highly complementary evolution of our partnership. By combining two businesses with closely aligned values, technical expertise and customer led cultures, we can further expand our product offering, build on our combined innovation capabilities and enhance the end-to-end solutions we provide to customers globally."

Chair at Treatt, Vijay Thakrar, concluded: "The board believes that the proposed acquisition by Döhler represents a positive outcome for Treatt shareholders, providing the certainty of a cash exit for shareholders at an attractive value. It also provides enhanced long-term support for Treatt within a larger strategic platform with access to significant resources.

"Döhler would be a highly complementary owner for Treatt, offering the scale, resources and global platform to support the business' development over time. The combination of Treatt's technical expertise and innovation capabilities with Döhler's established ingredients platforms and international distribution network creates a strong foundation for future growth within an ownership structure with family culture and long-term investment at its core.

"Being part of the Döhler Group will provide significant development opportunities for Treatt's employees and for Treatt to accelerate its new product innovation to develop even more products for customers with access to Döhler's deep ingredients expertise."

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