Natara Global Ltd., a flavor and fragrance ingredients maker backed by Exponent Private Equity LLP, announced Monday that it has agreed to acquire U.K.-listed rival Treatt PLC in a transaction valued at approximately £156.6 million ($212 million).

Under the terms, Natara will pay 260 pence in cash per share, a 16% premium to Treatt’s closing price of 224 pence on Friday. The acquisition will be executed via a court-sanctioned scheme, requiring approval from at least 75% of Treatt shareholders.

Natara said the deal will create “a leading global ingredients platform” and allow the company to expand its portfolio across beverages, flavors, fragrances, and consumer goods. The company also noted Treatt has been struggling with “material headwinds” — including high citrus costs and softening demand for premium beverages — and argued that private ownership would provide the best path to restore growth.

Advisers:

• For Natara and Exponent: Allen Overy Shearman Sterling LLP

• For Treatt: Ashurst LLP, working with general counsel Nick Hartigan and a large team led by partners Tom Mercer, Harry Thimont, and Duncan Liddell.

Leadership Perspective:
Natara CEO Yoram Knoop said the merger will combine two complementary businesses, strengthen the product offering, and create greater opportunities for employees through collaboration and investment in talent.

Companies Overview:

• Natara Global: Based in Hartlepool, England, with manufacturing sites in the U.K., U.S., and China.

• Treatt PLC: A U.K.-based supplier of natural extracts and ingredients, particularly for the beverage sector.

Treatt’s board, advised by Peel Hunt Ltd. and Investec PLC, has deemed the offer fair and reasonable and will unanimously recommend shareholder approval.

The companies expect to complete the transaction before the end of the year, subject to regulatory clearances in the U.K., U.S., Austria, and Ireland.