Treatt flavour of the month with £21.6m fundraise for US and UK expansion
Suffolk manufacturer Treatt plc has conditionally raised £21.6 million to accelerate expansion on both sides of the Atlantic.
Both the new UK headquarters in Bury St Edmunds and the extension of the US facilities are key to supporting the company’s future growth blueprint. Treatt’s 2022 vision is predicated on growth driven by a continued focus on citrus, sugar reduction and tea ingredient solutions.
The expansion in the US is expected to enhance the group’s technical capabilities and customer engagement facilities; Treatt provides ingredient solutions for the flavour, fragrance, beverage and consumer products industries.
In the UK, the relocation and expansion is expected to not only significantly improve client interaction and production capabilities but, over the medium term, drive further margin growth through a number of operational efficiencies and technical improvements.
Non-binding bank commitments have been received for a new $11 million US Construction to Term Loan and a £15 million UK revolving credit facility to support the financing of the capital investment programme.
Daemonn Reeve, Treatt’s CEO, said: “We are delighted with the support that we have received from both new and existing institutional shareholders.
“Alongside the debt financing we expect to obtain, the net funds will accelerate our US expansion plans and our UK site relocation to deliver a new UK facility capable of supporting the group’s future growth plans.”
Treatt has also delivered a strong set of results for the year to September 30. Revenue has increased by 24.5 per cent to £109.6m and adjusted profit before tax is up a massive 45.7 per cent to £12.9m.
Reeve said: “Treatt has enjoyed a very strong year with material wins in important growth categories. Once again the team have performed with exceptional skill and determination to deliver a set of results which mark another year of sustainable profitable growth.
“With our new five-year strategy now in place, colleagues across the Treatt Group are approaching the new financial year with passion and determination.”