The deal, worth £700m, will see Newlat acquire all Princes related operations and brands from current owner Mitsubishi Corporation.
Headquartered in Liverpool, Princes supplies grocery retailers across the UK and Europe with branded and own label products.
Meanwhile, Newlat is an international agro-food group that produces and distributes dairy, baby food, pasta, bakery, gluten free, instant hot snacks and other specialty food products, operating in Italy, the UK, Germany and France.
Following the completion of the deal, Newlat and its group will become ‘New Princes Group’, with Princes set to retain its identity and operate as a UK-based subsidiary. The newly formed group will have a global operating network of 31 factories, a portfolio across 10 distinct categories and revenue of around €2.8bn
Commenting on the news, Princes CEO 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.”
Newlat chair Angelo Mastrolia added: "We are extremely proud to have agreed this transaction, marking a crucial milestone in our growth strategy. Princes Limited is a prestigious company, and integrating its operations with Newlat Food allows us to further solidify our position as a leader in the food sector.
“On closing of this acquisition, Newlat Food will become the largest food company listed on the Milan Stock Exchange, reinforcing its role as a key international player. The economic outlook of the new group gives us confidence in a future of sustainable growth, poised to create value for all stakeholders. The newly combined group will offer a broad range of high quality products, addressing the needs of an increasingly demanding and diverse global market.
“This transaction enables us to enter new market segments and better serve our customers with an even more comprehensive, innovative, and unique product offering. The integration between Newlat Food and Princes Limited represents a significant opportunity for both companies to share expertise, 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.”
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