Sausage casing maker Devro has acquired collagen expert PV Industries in a deal that could pay more than €13.5m.Devro said it would pay the Netherlands based firm about €12.5m on a debt-free basis, with a possible additional payment of up to €1m under an earn-out arrangement.Devro which makes collagen casings for the food industry, said PVI offers Devro access to a strong skills base and a developing portfolio. PVI posted earnings of €1.3m on sales of €6.3m last year.The acquisition is conditional upon regulatory clearance.Devro group finance director Simon Webb said the acquisition supported its strategy by growing sales of collagen products through product differentiation.N + 1 Singer, who continues to rate the stock at 'buy' said the acquisition, looks 'sensible.'In a note analysts said earnings were expected to grow by about half by financial year 2017, although a lot depends how quickly Chinese expansion happens.Shares in Devro were up 0.49% to 310.75p.
