Global ingredients manufacturer Natara has reached an agreement with the board of directors at natural flavouring company Treatt Plc to acquire the business for £156.6 million.

Natara said the transaction would bring together two businesses to create a global ingredients platform in the Flavour and Fragrance (F&F) sector, which will aim to provide customers with a “broader product portfolio” across key markets.

The ingredients manufacturer was previously acquired by private equity firm Exponent in 2023. Its product range includes flavour components and natural extracts for the food industry, while Treatt offers clean label flavour blends as part of its product range.

It stated that the transaction would have a global salesforce and “state-of-the-art facilities” in order to “capitalise on opportunities not readily available to either company on a standalone basis”.

Commenting on the acquisition, Yoram Knoop, chief executive officer of Natara Global, said: “With the support of Exponent, Natara has been investing for growth since 2023. By combining with Treatt, we will be strongly positioned to continue our growth journey. The combination of Natara and Treatt will bring together two complementary businesses, expanding our product portfolio, accelerating our capability in innovation and delivering an enhanced customer proposition globally.

“The combination also will create more opportunities for each company’s teams, with greater capacity for collaboration and investment in talent. Together, we can unlock the long-term growth within Treatt’s business by providing the required investment, additional operational expertise, and flexibility that comes with private ownership. We are excited by the combination and the opportunities we believe it presents to our employees, customers and other key stakeholders.”