Sausage-skin maker Devro agrees to £540m takeover

Devro operates seven sites around the world

Scottish sausage-skin maker Devro has agreed to a £540m takeover offer from a German company.

Devro said the deal with Saria was "attractive" and valued the company at 65% more than its closing share price on Thursday.

One of Saria's subsidiaries also makes sausage casings and already distributes Devro products in Brazil.

Saria is part of the Rethmann Group, one of the biggest private companies in Europe.

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Devro chairman Steve Good said: "Under the ownership of Saria, the combined business will have an enhanced product offering, will be a stronger more diversified group of scale, and will look to further accelerate long-term sustainable growth.

"We believe that Saria's understanding of our markets, its strong financial position and the cultural fit will benefit the group's business and employees.

"As a result, the Devro directors have agreed unanimously to recommend that Devro's shareholders accept the offer from Saria."

Devro, which is headquartered in Moodiesburn, has seven sites around the world, including in Scotland, China and Czechia.

In 2019, Devro announced it was closing its Lanarkshire factory in Bellshill with the loss of 90 jobs.

At the time, Devro said it intended to increase manufacturing at its other North Lanarkshire site in Moodiesburn.