DAVY VIEW

The Board of Treatt is recommending a cash offer for the business – the offer is a very modest 16% premium to the closing price on September 5th. As of September 5th, the shares were down 54% for the year. The business has had a challenging 12 months, reflected in a series of profit warnings driven by industry headwinds and company execution. As of September 5th, Treatt traded at approximately 1x its invested capital base (EV/IC) – an asset that we believe is very well invested. This appears to be a favourable deal for the buyer.