UK – UK-based food and drinks manufacturer Princes is set to be entirely acquired by Italian company Newlat, according to an announcement by Princes.
The deal, valued at £700 million (US$893.6M), will see the global canned foods maker sold by its current owner, Japanese multinational Mitsubishi Corp.
Post-acquisition, Princes and Newlat Food will merge to form a new entity named New Princes Group.
According to multiple reports, the completion of the acquisition is subject to consultations with the Dutch Works Council of Princes and the European Works Council.
Additionally, the deal requires several customary regulatory approvals and the finalization of the group’s audited accounts.
Regarding potential job impacts, the firm’s spokesperson indicated that specific details could not be provided at this stage since the acquisition process is still ongoing.
“The business is being bought as a whole, and it’s not possible to offer any detail on potential changes as the process is not complete yet,” the spokesperson added.
This acquisition comes in the wake of financial difficulties for Princes, which reported a pre-tax loss of £50.7 million (US$64M) for the financial year ending March 31, 2023.
Despite this loss, the company’s revenue increased from £1.4 billion (US$1.8B) in 2022 to £1.7 billion (US$2.2B) in 2023.
During the same period, Princes reduced its workforce by 166 employees, bringing the total number of employees from 6,475 to 6,309.
The acquisition by Newlat represents a significant shift for Princes, with the new ownership aiming to stabilize and potentially revitalize the company’s financial health.
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