A Scottish sausage-skin maker Devro has agreed to a £667m takeover offer from a German company.
The deal gives Devro a £540m equity value and £667m enterprise value, including debt.
Devro said the deal with Saria was “attractive” and valued the company at 65% more than its closing share price on Thursday.
The company, which makes most of its money from selling sausage skins, had been valued at £667m.
One of Saria’s subsidiaries, Van Hessen, also makes sausage casings and already distributes Devro products in Brazil.
Saria is also part of Rethmann, one of the biggest private companies in Europe.
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 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.