25th Nov 2022 09:50
(Alliance News) - Devro PLC agreed to a takeover on Friday by food manufacturing company Saria SE & Co KG.
The sausage casing manufacturer, based near Glasgow, unanimously recommended Saria's offer of 316.10 pence per Devro share.
The deal gives Devro a GBP540 million equity value and GBP667 million enterprise value, including debt.
The offer represents a 65% premium to its 192.00 pence closing price on Thursday. Shares in Devro were up 60% to 306.58 pence in London on Friday morning, giving it a market capitalisation of GBP513.4 million.
Saria's 2021 revenue was around EUR3 billion, compared to Devro's annual revenue of GBP252.4 million.
Separately, Devro said its "traded strongly" in the four months to October 31. Revenue was up 16% year-on-year, or 10% at constant currency.
"Constant currency revenue growth was driven by higher pricing, successful recovery of inflation, as well as good volume increases led by our mature markets. Volume growth continues to reflect the successful execution of our strategy. Operating margins in the period were up on the prior year and well ahead of those achieved in the first half," the company said.
Devro said current trading is "slightly ahead of the board's expectations".
By Greg Rosenvinge; [email protected]
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