Newlat Completes £700 Million Acquisition of Princes
The acquisition of international food and drink group Princes by Italian-based Newlat is now complete.
In May, Newlat announced its agreement to acquire Princes from Mitsubishi Corporation for £700 million, encompassing all current operations and brands.
As part of this acquisition, Newlat will rename itself as ‘New Princes Group,’ integrating both Newlat and its existing subsidiaries with Princes. This renaming process is anticipated to conclude by the end of this year.
The combined entity, New Princes Group, will boast an impressive turnover of €2.8 billion (approximately £2.4 billion), a global network of 31 plants, 8,800 employees, and over 30 brands.
What’s more, this merger will effectively double the product category offering to customers, positioning New Princes Group as one of the leading multi-brand and multi-product food companies in Europe.
Princes’ Legacy and Future
Princes, one of the UK’s largest food and drink groups, has a rich history as a trusted supplier of customer own-brand products.
With a global supply network and a portfolio of established brands, Princes is a key player in the international grocery sector, providing millions of consumers across the United Kingdom and Europe with quality products daily.
Moreover, Princes specialises in manufacturing and sourcing high-quality products, ranging from canned foods to beverages, and holds a significant presence in household grocery items.
The Chief Executive Officer of Princes expressed enthusiasm about this new chapter in the company’s 140-year history. They highlighted Newlat’s support for their strategic growth plans and the historic opportunity that being part of New Princes Group represents for their customers and employees.
The CEO also emphasised the complementary nature of Newlat and Princes, noting that their distinct portfolios present significant growth opportunities. With its iconic brands, own label expertise, and extensive international manufacturing platform, Princes is poised for a bright future within the New Princes Group.
Strategic Growth and Vision
Newlat’s Chairman reflected on the journey that began 20 years ago, growing from a small family business into a dynamic multinational company.
They expressed that this acquisition marks a significant milestone, making New Princes Group one of Europe’s foremost food and beverage industry leaders with an exceptional portfolio spanning 10 diverse categories.
What’s more, they praised Princes for its rich heritage, iconic brands, and unwavering commitment to quality, which together will offer European and global consumers premium products crafted with expertise drawn from diverse culinary traditions.
As part of their ambitious growth story, New Princes Group aims to achieve a turnover of €5 billion (approximately £4.3 billion), an EBITDA of €317 million (approximately £271 million), a Net Income exceeding €100 million (approximately £85 million), a FCF above €170 million (approximately £146 million), and shareholder equity surpassing €700 million (approximately £599 million) by 2030.
Moreover, the Chairman also emphasised their readiness to embrace the future with optimism and excitement.
Leadership and Operational Structure
The new Board of Directors for Princes Limited will be led by Angelo Mastrolia as Chairman, Simon Harrison as CEO, Fabio Fazzari as Chief Financial Officer, Giuseppe Mastrolia focusing on commercial and operational synergies, and Benedetta Mastrolia ensuring effective communication within the Group.
Supporting this new Board is a UK-based Operating Board, including Barry McDonnell as Chief Operations Officer, Joe Dent as Chief People Officer, Ian Rooney as Chief Supply Chain Officer, Connie Emerson as Chief Strategy Officer, Neil Bohannon as Chief Procurement Officer, and Ruth Simpson as Chief Commercial Officer.
Princes Limited’s head office remains in Liverpool, UK, with a significant presence across continental Europe managed from The Netherlands, along with dedicated sales and marketing offices in Poland, tuna processing facilities in Mauritius, tomato processing in Italy, and edible oils production in Poland.
Newlat’s Diverse Portfolio
Newlat, an international agro-food group, has a strong heritage in producing and distributing dairy, baby food, pasta, bakery, gluten-free products, instant hot snacks, and other specialty foods under its own brands and private labels.
It operates in Italy, the UK, Germany, and France through its subsidiaries Centrale del Latte d’Italia, Symington’s, Newlat GmbH, and EM Foods. This diverse portfolio complements Princes’ extensive range of products, creating a powerhouse in the food and beverage sector.
Conclusion
In conclusion, the completion of Newlat’s acquisition of Princes and the formation of New Princes Group marks a significant milestone in the European food and beverage industry.
This new entity combines the strengths of both companies, offering a vast array of products and brands to consumers worldwide. With ambitious growth plans and a robust organisational structure, New Princes Group is poised to become a leading force in the industry, driving innovation and quality in the food and beverage sector.
The future looks bright for New Princes Group as it embarks on this new journey, leveraging its combined expertise and heritage to deliver exceptional value to customers, investors, and stakeholders alike.
News Credits: Acquisition of food and drink group Princes completes
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