THE company that is taking over a Scottish manufacturer has pledged to invest in the business.

Devro, the Lanarkshire-based sausage skin maker, has agreed to a takeover by a company owned by one of Germany's richest families.

The Scottish manufacturer, which employs around 2,000 globally, announced details of the move by German giant Saria, part of the Rethmann family empire, on Friday.

Devro, one of the largest sausage skin and collagen casings makers in the world, said the enterprise value was £667 million.

The cash consideration represents an "attractive premium" of 65 per cent to the closing price of 192p per Devro share from the last business day before the announcement last night, it said.

The business team also wrote about Devro warning on price increases

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.

"Devro has built a reputation for manufacturing high quality products and providing a service to a customer base that is complementary to the SARIA group's. The combined businesses would be ideally placed to capture growth in both mature and emerging markets by maximising the combined sales and distribution platform, an improved research and development function and a wider range of products.

"We are excited by the opportunity to invest further in Devro's facilities and team over the long term and deliver a range of benefits to employees, customers and suppliers alike."

Steve Good, chairman of Moodiesburn-based Devro, 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 also said: "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."

Saria specialises in products for human consumption, animal nutrition, aquaculture and agriculture.