Devro

Devro is a specialist materials and food-processing company best known for manufacturing collagen sausage casings. The business originated in 1960 as a new venture within Johnson & Johnson after researchers developed a collagen-based material suitable for making sausage skins. Its name was derived from the phrase “Development and Research Organisation,” reflecting the research unit from which the business emerged. Over time, Devro developed from a single-technology operation into an international supplier of edible and industrial collagen-based materials. The company’s principal activity has been the production and distribution of sausage casings. Collagen casings provide manufacturers with a standardized alternative to natural animal casings and are used across a broad range of processed-meat products. Devro has described itself as a world leader in sausage casings, with customers and operations spanning major food-processing markets. Its portfolio has also included films, casings, and other specialized collagen products used in healthcare and cosmetics, although food applications have remained central to the company’s identity. Devro’s corporate structure changed significantly in 1991, when a management team acquired the business from Johnson & Johnson in a transaction valued at £108 million. The company subsequently became publicly traded, listing on the London Stock Exchange in 1993. Public ownership supported a period of international expansion, including the 1996 acquisition of Teepak International, a United States-based casing business. That transaction also brought Devro a majority interest in Cutisin, a Czech collagen manufacturer; Devro completed the acquisition of the remaining interest in Cutisin in 2004. The company also reshaped its product portfolio. In 2000, it sold its cellulose business for £4.8 million. The disposal produced a substantial exceptional loss, reported at £54.5 million, but concentrated the business more heavily on collagen and related technologies. In 2007, Devro held takeover discussions with an undisclosed potential buyer, reportedly linked to its then-largest shareholder, Acomita Investment. The talks ended without agreement, in part because of unresolved issues concerning the company’s pension scheme. Devro later expanded its manufacturing and geographic footprint. It acquired Dutch collagen manufacturer PVI Industries in 2015 for £10 million. Its production and research network has included facilities in the Czech Republic, the United States, Australia, and China. The Czech sites at Jilemnice and Slavkov have been particularly important to its European manufacturing and research activity, while its Nantong facility became the company’s largest manufacturing site by volume. Other technical and manufacturing locations have included Sandy Run in South Carolina and Bathurst in New South Wales. The company entered the FTSE 250 Index in August 2010 following the completion of Deutsche Bahn’s acquisition of Arriva. Leadership changed in February 2018, when Peter Page left the chief executive role after nearly eleven years and was succeeded by Rutger Helbing, previously Devro’s finance director. In November 2022, Devro agreed to a £540 million takeover offer from SARIA Bio-Industries. The acquisition completed in April 2023, taking Devro out of the public market and making it part of the SARIA group. Under SARIA ownership, Devro remains associated with collagen casings and specialized collagen technologies, serving food manufacturers and selected healthcare and cosmetics applications from an international operational base.

Devro began in 1960 as a Johnson & Johnson research-derived business. Researchers within the group developed a collagen material that could be formed into sausage casings, creating the technical basis for a new company. The name Devro was formed from “Development and Research Organisation,” the Johnson & Johnson unit from which the business emerged. Its early development established the company’s long-term focus on collagen technology and food-processing materials. In 1991, Devro underwent a major ownership change when a management team bought the business from Johnson & Johnson for £108 million. Two years later, the company listed on the London Stock Exchange. The listing marked the transition from a corporate research venture to an independent public company and provided a platform for international expansion. A significant step in that expansion came in 1996, when Devro acquired Teepak International in the United States for US$135 million. The deal included a majority stake in Cutisin, a Czech company involved in collagen manufacturing. Devro later acquired the remaining interest in Cutisin in 2004, strengthening its European production and research base. Devro also made portfolio changes during the 1990s and 2000s. In 2000, it sold its cellulose business for £4.8 million. The sale generated a reported exceptional loss of £54.5 million, but it left the company more focused on collagen-related activities. In 2007, possible takeover discussions involving an undisclosed suitor were terminated. Market reports connected the possible buyer with Acomita Investment, then Devro’s largest shareholder, but the parties could not reach agreement on matters relating to Devro’s pension scheme. The company’s international profile grew further through investment in manufacturing, technical development, and regional supply. Its operations came to include facilities in the Czech Republic, the United States, Australia, and China. Jilemnice and Slavkov in the Czech Republic became important manufacturing and research locations. Devro’s Nantong plant in China was identified as its largest manufacturing site by volume, while other facilities included Sandy Run in South Carolina and Bathurst in New South Wales. Devro expanded its collagen capabilities again in 2015 through the £10 million acquisition of PVI Industries, a Netherlands-based collagen manufacturer. In 2010, it had been promoted to the FTSE 250 Index. Leadership changed in February 2018, when chief executive Peter Page left after almost eleven years in the role. Rutger Helbing, previously finance director, succeeded him. The final major ownership transition began in November 2022, when Devro agreed to a £540 million takeover by SARIA Bio-Industries. The transaction completed in April 2023. Devro consequently ceased to operate as an independently listed public company and became part of SARIA. Its established business remains focused on collagen sausage casings, while its broader capabilities cover films and other specialized collagen products for food, healthcare, and cosmetics applications.

1. 2023Acquisition completed

   SARIA completed its acquisition of Devro in April, bringing the company into the SARIA group.

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2. 2022SARIA takeover agreed

   Devro agreed to a takeover offer from SARIA Bio-Industries valued at £540 million.

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3. 2018Chief executive succession

   Peter Page stepped down as chief executive and was succeeded by former finance director Rutger Helbing.

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4. 2015Acquisition of PVI Industries

   Devro acquired Dutch collagen manufacturer PVI Industries for a reported £10 million.

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5. 2010Promotion to the FTSE 250

   Devro entered the FTSE 250 Index after Deutsche Bahn completed its acquisition of Arriva.

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6. 2004Full acquisition of Cutisin

   Devro completed the acquisition of the remaining interest in Czech collagen manufacturer Cutisin.

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7. 2000Cellulose business divestment

   Devro sold its cellulose business for £4.8 million; the disposal was associated with a reported exceptional loss of £54.5 million.

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8. 1996Acquisition of Teepak International

   Devro acquired United States-based Teepak International for US$135 million and obtained a majority interest in Czech manufacturer Cutisin.

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9. 1993London Stock Exchange listing

   Devro became a publicly listed company two years after the management buyout.

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10. 1991Management buyout from Johnson & Johnson

    A management team acquired Devro from Johnson & Johnson in a transaction valued at £108 million.

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11. 1960Devro is established within Johnson & Johnson

    Johnson & Johnson created Devro as a new business after developing collagen technology suitable for sausage casings.

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A specialist global collagen-materials supplier centered on sausage casings, with additional applications in healthcare and cosmetics.

• Collagen sausage casingsFood-processing materials1960

  Devro’s core product line consists of collagen casings used by sausage and processed-meat manufacturers. These casings are manufactured from collagen and provide consistent dimensions and processing characteristics for industrial food production. They form the central product category around which Devro built its international manufacturing, technical, and research operations.

• Collagen filmsFood-processing materials

  Devro produces collagen films and related casing materials for specialized food-processing applications. These products extend the company’s use of collagen beyond conventional sausage skins and support the needs of manufacturers seeking engineered, standardized materials for processed-food production.

• Specialized collagen productsHealthcare and cosmetics materials

  In addition to food products, Devro has produced specialized collagen materials for healthcare and cosmetics applications. The available reference material does not identify individual product names or detailed formulations, but these activities reflect the company’s broader technical capability in processing collagen for non-food uses.

• 2022Agreement to be acquired by SARIAM&A

  Devro remained an international collagen-casings specialist but was still operating as a publicly listed company.

  What changed. Devro agreed to a £540 million takeover offer from SARIA Bio-Industries.

  Aftermath. The acquisition completed in April 2023, ending Devro’s independent listed-company status and placing it within SARIA.

  Takeover value. £540 million (2022 offer; completed April 2023)

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• 2015Acquisition of PVI IndustriesM&A

  Devro sought to expand its collagen manufacturing capabilities.

  What changed. Devro acquired Netherlands-based collagen manufacturer PVI Industries.

  Aftermath. The acquisition broadened Devro’s collagen manufacturing platform and international operating base.

  Acquisition consideration. £10 million (2015)

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• 2000Divestment of the cellulose businessStrategy

  Devro was reshaping its portfolio around collagen and related technologies.

  What changed. The company sold its cellulose business for £4.8 million.

  Aftermath. The disposal resulted in a reported exceptional loss of £54.5 million and left Devro more concentrated on collagen activities.

  Sale value and exceptional loss. £4.8 million sale proceeds; £54.5 million exceptional loss (2000)

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• 2023SARIA completes acquisition of Devro

  The acquisition of Devro by SARIA was completed in April 2023, ending Devro’s status as a publicly listed company and adding its collagen business to the SARIA group.

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• 2022Devro agrees to £540 million takeover by SARIA

  Devro agreed to a takeover offer from SARIA Bio-Industries valued at approximately £540 million, beginning the process of taking the collagen-casings manufacturer into private ownership.

  M&A
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• 2018Devro appoints Rutger Helbing as chief executive

  Peter Page stepped down as chief executive after almost eleven years in the position. He was succeeded by Rutger Helbing, who had previously served as Devro’s finance director.

  Leadership change
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• 2015Devro acquires PVI Industries

  Devro acquired Dutch collagen manufacturer PVI Industries in a transaction reported at £10 million, expanding its collagen manufacturing capabilities.

  M&A
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• 2010Devro enters the FTSE 250 Index

  Devro was promoted to the FTSE 250 Index after Deutsche Bahn completed its acquisition of Arriva.

  Other
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• 2007Devro holds unsuccessful takeover discussions

  Devro held discussions with an undisclosed potential acquirer amid market speculation that its then-largest shareholder, Acomita Investment, might be involved. The talks ended after the parties failed to resolve issues associated with the company’s pension scheme.

  M&A
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1. Devro