Ingredients specialist Treatt has lost its CEO after shareholders rejected a takeover bid earlier this month.
Treatt said David Shannon had informed the board of his decision to step down as CEO at the end of the year. The process to find his replacement is underway.
Shannon joined Treatt in June 2024, with much of his tenure spent overseeing the planned sale of the business to flavour manufacturer Natara Global.
Shannon and the board recommended a deal valuing the company at £174m back in October. However, shareholders rejected the move a few weeks later.
The opposition was led by fellow ingredients group Döhler, which built a 28% stake in Treatt after the planned sale was made public. Döhler said it “intends to hold its shares in Treatt for investment purposes”.
The results show 41% of shareholders approved of the deal, below the 75% threshold necessary for it to go ahead. Natara said its latest offer was final and would not be raised further.
After the vote, Treatt chairman Vijay Thakrar said “we will continue to execute our strategy to maximise shareholder value by focusing on three primary pillars: building on and enhancing our heritage; accelerating premium growth; growing in new markets”.
Treatt’s share price has halved so far year amid weaker customer demand. Revenues were down 14.5% to £130.6m last year due to high citrus oil prices and softer demand in the North American market, while pre-tax profit halved to around £10m.
Its share price today was flat after the announcement of Shannon’s departure.
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