ん？直訳してみ。なんかヘンじゃない？

The teacher is satisfied with 　　　his students
　　　　　　　　　　　　　　　　　　　　　　and
　　　　　　　　　　　　　　　　　　　　　　the students with their teacher

で、his studentsとthe students with〜が並列だと思うよ。

The teacher is satisfied with his students and with their teacher．
なら、with his studentsとwith their teacherが並列でOK