Natara to buy Treatt for £156.6m in private equity-backed takeover

Natara, a private equity-backed ingredients business owned by Exponent, has agreed to buy London-listed flavourings and natural ingredients group Treatt for £156.6 million, the companies said Monday.

Under the terms of the recommended takeover, Natara will pay 260 pence per Treatt share, a 16.1% premium to Treatt’s closing price on Friday. The offer values the company at about £156.6 million and will require court approval; the parties said the deal is expected to complete later this year.

Treatt shares jumped sharply on the announcement, rising as much as 17.9% to 264p by midafternoon on Monday. The Treatt board said it would recommend the proposal and described the offer as "fair and reasonable." The company makes natural extracts and ingredients for the food, fragrance and consumer sectors.

Vijay Thakrar, chair of Treatt, said the combination with Natara would provide "investment and scale" to accelerate growth and lower execution risk compared with a standalone strategy. "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," he said in a statement.

Natara was acquired by private equity firm Exponent in 2023 and supplies ingredients and aromas to food and fragrance customers. Yoram Knoop, Natara’s chief executive, said the deal would broaden the combined group’s product portfolio, boost innovation capabilities and strengthen its global customer proposition. "The combination also will create more opportunities for each companies’ teams, with greater capacity for collaboration and investment in talent," he said.

The takeover follows a period of weakness for Treatt. Two months ago the company cut its sales and profit guidance, saying it had been hit by weaker sales and difficult trading conditions, particularly in North America. The guidance downgrade prompted a notable decline in Treatt’s share price before Monday’s bid.

The transaction is the latest in a string of deals for London-listed companies this year, a trend that has drawn attention from investors and market commentators. Other UK-listed firms taken over in 2025 include Deliveroo, Spectris and Dowlais, reflecting heightened activity by private equity and strategic buyers seeking assets on public markets.

Details on post-deal integration, financing and any planned changes to management were not disclosed beyond the statements from the two companies. The takeover will proceed through the courts under the rules governing schemes of arrangement, and shareholders and regulators will be kept informed as required.

Analysts said the deal underscores ongoing consolidation in food ingredients and flavouring markets, where scale and breadth of product ranges can be decisive in serving multinational customers. For Treatt shareholders, the 260p-per-share offer locks in a cash exit at a premium to recent trading levels.

Assuming the usual regulatory and court approvals, the companies said they expect to complete the transaction later in the year. Shareholders will receive further details on timetable and next steps as the scheme of arrangement progresses.