SARIA Global Newsletter February 2023
SARIA offers takeover for Devro
In mid-November 2022, SARIA announced a takeover offer for the Scottish company Devro, one of the world’s leading suppliers of edible collagen casings, films and coatings.
Devro in brief
Devro, an acronym for “Development and Research Organization,” was founded as a part of Johnson & Johnson in the early 1950s after a process was developed within the company to produce sausage casings from collagen. It became an independent stock-listed company in 1991. Devro has a workforce of about 2,000 people and operates six manufacturing sites in addition to its headquarters in Moodiesburn (Scotland). The most recent and company-wide largest branch was opened in Nantong (China). Other locations are in the Czech Republic, Australia, the United States and the Netherlands. Sales offices are also operated in Germany, Russia, Hong Kong, Japan and New Zealand.
Good reasons for acquisition
As collagen is produced from animal by-products, SARIA is familiar with Devro’s field of work. In addition, Van Hessen already works with Devro products in Brazil.
The acquisition brings together two leading international companies with complementary product portfolios in the sausage casings market, which in turn offers sustainable and scalable growth in highly attractive and dynamic business areas. The combination of the two companies is ideal to strengthen market position and growth in both established and emerging markets by having a joint effort in sales, driving an enhanced research and development function, and offering a broader product range. As a company that shares our values and vision of sustainable and responsible business, the addition of Devro to the SARIA Group will not only bring benefits to customers and suppliers, but also opens new perspectives and opportunities for employees on both sides.
The London Stock Exchange, where Devro has been listed since 2010, sent out clear positive signals from shareholders after the takeover offer was announced. The transaction has been approved by the anti-trust authorities, if the shareholders agree to it, an acquisition could be possible in the first half of the year.
If the acquisition is successful, Devro will become part of the Food & Pharma Division. Therefore, the Executive Board member for the division, Harald van Boxtel, will be responsible for this business unit. SARIA intends to maintain Devro’s seven manufacturing sites and to continue to invest in them to increase their capacity.