The deal with Bidco is for a cash acquisition of the entire issued valued at approximately £540 million on a fully diluted basis, implying an enterprise value of £667m, equivalent to a multiple of 10.9 times enterprise value to EBITDA for the 52 weeks ended 30 June 2022.

Chairman of Devro Steve Good said: “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.”

He added: “The offer also provides an opportunity for Devro shareholders to crystallise, in cash, the value of their investments at a fair and reasonable value.

“Furthermore, 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.”

Harald van Boxtel, chief executive of Bidco, said: “The proposed combination of Devro and the Saria group will bring together two leading international businesses with complementary product portfolios, particularly in the sausage casings market, providing a platform for sustainable and scalable growth in highly attractive and dynamic categories.”