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Italy’s Newlat in talks to buy UK food group Princes
Newlat is looking to add to its presence in the UK with a deal for the food and drinks supplier.
According to Reuters news agency, Italy's Newlat said on Tuesday it was in "very advanced" talks to buy British food group Princes, confirming reports in the British and Italian media.
Continuous news channel Sky News reported last week that British buyout firm Epiris and Newlat were competing to purchase Princes from Japanese owner Mitsubishi Corp which the report said is seeking a price of 400 million pounds ($503 million or Euro 458 million).
In a brief statement, Newlat, which already owns UK food manufacturer Symington’s, confirmed it was involved in a "competitive process" for a deal to buy Princes from Japan-based conglomerate Mitsubishi Corp. “Newlat Food S.p.A. confirms its participation in the competitive process for the sale of the historic English food group Princes Limited,” the statement read. “The company also confirms that the negotiation is currently in a very advanced stage.”
"(Our) Chairman, Angelo Mastrolia, and the entire management team are committed to seizing a great strategic opportunity capable of creating value for all stakeholders of the group," it added.
In January 2023, financial-markets news publication Debtwire said Mitsubishi had appointed M&A advisers at Houlihan Lokey to handle a sale process. Approached by specialized press at the time, a spokesperson for Mitsubishi said “no decision” had been made on Princes. Asked if Mitsubishi had hired bankers to oversee a potential sale, the spokesperson declined to comment. Referring to Mitsubishi as a whole, he added: “We are always looking to seek opportunities to grow the company.”
Princes supplies tinned fruit and fish under its own name brand, and also has other brands such as Flora sunflower oil and the Napolina range of Italian-style tomato sauces and cooking ingredients.
It traces its roots back to 1880 when it was founded as a fish importer in Liverpool, the northern English city where it retains its international headquarters. It has been owned by Mitsubishi since 1989.
It traces its roots back to 1880 when it was founded as a fish importer in Liverpool, the northern English city where it retains its international headquarters. It has been owned by Mitsubishi since 1989.
Princes has two food factories and three beverage production sites in the UK. The company also has a tomato-processing facility in Italy and a tuna-processing site in Mauritius. During the year to the end of March 2022, the company employed, on average, 6,977 full-time staff. In the year to 31 March 2022, Princes generated revenue of £1.44billion ($1.76billion or €1.6 billion), down 8% on the previous 12 months. Princes said it was lapping “an exceptional increase” in revenue booked the year earlier when Covid-19 boosted demand.
The Newlat Group operates in sectors including pasta, milk and dairy, instant noodles and bakery products.
Sources: reuters.com, corriereortofrutticolo.it, just-food.com, efanews.eu, zonebourse.com, business-live.co.uk
