Newlat Food, an Italian agri-food group based in Reggio Emilia, has signed an agreement for the acquisition of 100% of Princes Limited, a historic British food group founded in Liverpool in 1880. Princes Limited is currently owned by Mitsubishi Corporation. The agreement provides for a payment of 700 million pounds, without considering debt or liquidity, of which 650 million will be paid in cash and 50 million in Newlat Food shares.
Upon completion of the transaction, Newlat Food will change its name to New Princes Group. On the stock market the stock soars, gaining over 8%. At 11am, the shares rose by 8,68% to 6,89 euros.
New Princes Group: a group with a turnover of 3 billion is born
With the acquisition of Princes, Newlat Food will achieve a consolidated turnover of approximately 3 billion euros and will gain a solid foothold in new categories in the UK market. The Group will expand its product offering to customers, becoming one of the leading multi-brand and multi-product companies in the food sector in Europe. Thanks to its industrial know-how and production capacity of its 31 factories, Newlat Food will become a unique player in the sector.
Princes Limited has generated a consolidated turnover for fiscal year 2024 (ended March 31, 2024) of £1,71 billion and Adjusted EBITDA of £100,54 million. Adjusted Net Profit reached £13,03m.
With the planned acquisition of Princes, Newlat Food's pro forma consolidated data (combined) will show revenue of Euro 2,8 billion, Adjusted EBITDA of Euro 188 million and adjusted net profit of Euro 31,44 million. Pro forma net debt reaches €616 million, with a net debt/EBITDA ratio of 3,28x, while the net debt/EBITDA ratio is anticipated to be less than 2,5x at the end of the current fiscal year.
Closing expected by July 2024
Il closing of the transaction, conditional on antitrust approval and consultation with Princes' European and Dutch works councils, is expected by July 2024. The Presidency of the Council of Ministers confirmed that the operation will not be subject to the golden power.
Il financing it will be covered by company liquidity, shareholder financing and a loan of 300 million euros from a group of international banks led by Unicredit and BNL BNP Paribas. Other participants in the pool include Rabobank, Commerzbank, Banco BPM and BPER. Unicredit, BNL BNP Paribas and Equita acted as financial advisors, while BonelliErede and LCA provided legal advice to Newlat Food.
Mastrolia, president of Newlat Food: “We consolidate our position in the food sector”
“We are extremely proud to have reached an agreement on this transaction, which marks a key milestone in our growth strategy. Princes Limited is a prestigious company and the integration of its operations with Newlat Food allows us to further consolidate our position as a leader in the food sector. Upon completion of the acquisition, Newlat Food will become one of the largest food companies listed on the Milan Stock Exchange, strengthening its role as an international protagonist. The economic prospects of the new group give us confidence in a future of sustainable growth, ready to create value for all stakeholders. The new group will offer awide range of high quality products, responding to the needs of an increasingly demanding and diversified global market. This transaction will allow us to enter new market segments and to better serve our customers with an even more complete, innovative and unique product offering. The integration between Newlat Food and Princes Limited represents asignificant opportunity for both companies to share skills, resources and synergies, contributing to a successful and mutually beneficial future. The mission of the new group remains to ensure continuous excellence and innovation, keeping customer satisfaction and sustainability at the forefront,” he said Angelo Mastrolia, President of Newlat Food.
