Treatt to be Acquired by Natara Global in £156.6 Million Deal

Treatt PLC (LON:TET) is set to be acquired by Natara Global Limited, a company controlled by Exponent Private Equity LLP, in a recommended cash acquisition valuing the at approximately £156.6 million.

The deal, structured as a Scheme of Arrangement, offers Treatt shareholders 260 pence per share.

This offer represents a premium of 16.1% to the closing price on September 5, 2025, and a more substantial 39.5% premium compared to the closing price on July 24, 2025, the date of a prior trading update. The Treatt board is recommending shareholders vote in favor of the acquisition.

Headline Numbers:

• Offer Price: 260 pence per share
• Total Valuation: Approximately £156.6 million
• Premium: Up to 39.5%

The acquisition comes at a time when Treatt has faced headwinds, including competitive pressures, softening consumer confidence in North America, and volatile prices. These challenges have led to downward revisions in profit guidance for the financial year ending September 30, 2025.

A Treatt update recently lowered the firm's profit before tax and exceptional items (PBTE) guidance for FY2025 to between £9 million and £11 million, citing lower repeat customer volumes and the impact of a weaker US dollar.

The board acknowledges that while improvements are expected, the recovery remains uncertain due to external factors and the time required for internal improvements to take effect. Natara believes that under private ownership, Treatt can more effectively navigate these challenges and unlock long-term growth.

The acquisition is expected to bring together two complementary businesses, creating a leading global ingredients platform in the flavor and fragrance (F&F) sector.

Natara anticipates strategic and operational benefits, including expanded product portfolios, enhanced customer propositions, and improved operational efficiencies.

AskTraders Takeaway:

This acquisition provides Treatt shareholders with an opportunity to realize immediate value at a premium, mitigating the risks associated with the company's current headwinds and uncertain recovery. The deal is subject to shareholder approval, court sanction, and regulatory clearances, and is expected to close during 2025.

Vijay Thakrar, Chair of Treatt, stated, “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.”