Italian-based Newlat Food SpA has declared its intention to acquire the entire Princes Group from the Mitsubishi Corporation, encompassing all current operations and brands in an agreement valued at GBP 700 million.
Princes Chief Executive Officer Simon Harrison said: “This is an exciting prospect for Princes, and we are delighted that Newlat share our confidence in the Group’s strategic growth plans, brand strategy, operational excellence and people culture. The intended sale remains an ongoing process and further information will be shared in due course.”
With a global supply network and a portfolio of branded and customer own brand products, Princes is one of the UK’s largest food and drink groups. Its Liverpool, UK, head office is supported by operations across continental Europe, managed from The Netherlands. There are also dedicated sales and marketing offices in Poland, tuna processing facilities in Mauritius, tomato processing in Italy and edible oils production in Poland.
Newlat is an international agro-food group with a strong heritage, producing and distributing dairy, baby food, pasta, bakery, gluten free, instant hot snacks and other specialty food products mainly under its own brands as well as private label. Newlat has operations in Italy, the UK, Germany and France, through its subsidiaries Centrale del Latte d’Italia, Symington’s, Newlat GmbH and EM Foods. Newlat Food SpA and its subsidiary Centrale del Latte d’Italia are both listed on the Milan Stock Exchange.
Following the completion of the intended acquisition of the group, Newlat Food SpA and its group will become the “New Princes Group”.
Princes Limited will retain its identity and operate as a UK-based subsidiary of the New Princes Group. The newly formed New Princes Group will have a global operating network of 31 factories and a diversified portfolio across 10 distinct categories.
Princes said that by combining these two large, complementary businesses would create a leading player in the European food industry with a revenue of around €2.8 billion and an adjusted EBITDA of some €190 million.
By leveraging the expertise, commercial networks, and know-how of the group the management is optimistic of increasing the groups turnover to €5 billion by 2030 and cementing a strong position in all the markets and categories in which it operates. In addition, profit growth will be enhanced through a combination of cost and structural synergies, it said.
Consultation with the Dutch Works Council of Princes is required before the final purchase agreement is signed, and the transaction is also subject to the receipt of a number of customary regulatory approvals, finalisation of the group’s audited accounts and consultation with the European Works Council.
