Devro agrees £692m increased takeover bid from Saria

Devro, the Glasgow-based sausage skin and food collagen products firm, said on Thursday it has agreed an increased and “final” takeover offer from German food manufacturing company Saria SE & Co KG.

Devro said: “The revised proposal values the entire issued and to be issued share capital of Devro at approximately £564 million on a fully diluted basis, implying an enterprise value of £692 million, equivalent to a multiple of 11.3 times enterprise value to EBITDA for the 52 weeks ended 30 June 2022.”

The revised proposal represents an increase of 13.9p or 4.4% per Devro share compared to the original offer price of 316.1p per Devro share.

Under the terms of the revised proposal, Devro shareholders would receive 320p in cash per Devro share and a second permitted interim dividend of 10p.

Devro share rose about 7% to 327p.

The revised proposal represents a premium of 71.9% to Devro’s closing price of 192p on November 24, 2022, the last business day before the commencement of the offer period.

Devro added: “Since the original announcement, Devro and Bidco have engaged with Devro shareholders, and in particular have noted the views of certain Devro shareholders about the terms of the original offer.

“The board of Devro has engaged with Bidco and its advisers in relation to the terms of the offer.

“The boards of Bidco and Devro are pleased to announce that they have reached agreement on the terms of an increased and final revised proposal … for the acquisition of the entire issued and to be issued ordinary share capital of Devro.”