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In a brief statement, Newlat, who already owns British food maker Symington’s, expressed concern about the race to buy Princes from Japanese conglomerate Mitsubishi Corp.
“Newlat Food S. p. A. confirms its participation in the competitive procedure for the sale of the historic English food organization Princes Limited,” it says. “The company also confirms that negotiations are at a very complex stage lately. “
The bakery, dairy and pasta supplier follows a Sky News report yesterday that Newlat was one of two remaining bidders for Princes, along with UK-based personal equity firm Epiris.
In September, the news channel also named Newlat and Epiris as among the prospective buyers of Princes, along with financial investors Lone Star Funds, Aurelius and One Rock Capital. On Friday, Sky News reported the group had been whittled down to two, noting it was ‘unclear’ when a deal might be finalised nor whether Newlat or Epiris are willing to pay the speculated asking price of £400m ($502.6m).
In January, money market data publication Debtwire said Mitsubishi had appointed M&A advisers at Hulihan Lokey to manage a sale process.
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Contacted via Just Drinks at the time, a Mitsubishi spokesperson said “no decisions had been made” related to Princes. Asked if Mitsubishi had hired bankers to oversee a potential sale, the spokesman declined to comment. Referring to Mitsubishi as a whole, he added: “We are looking for opportunities to grow the business. »
Just Drinks reached out to Princes for comment today.
Mitsubishi acquired Liverpool-based Princes in 1989. At the time, Princes was focused on importing and distributing non-perishable food. The company’s product diversity now also includes oils and beverages.
In the year ended March 31, 2022, Princes generated profit of £1. 44 billion ($1. 76 billion), down 8% from the previous 12 months. Princes said it saw “an exceptional increase” in profits recorded last year as Covid-19 boosted demand.
Operating profit of £37. 4 million, up from £47. 5 million last year. Profit for the year attributable to commercial homeowners halved from £34. 8 million to £17. 2 million. Annual profits resulting from the sale of an asset.
Princes has two food factories and three beverage productions in the UK. The company also has a tomato processing plant in Italy and a tuna processing plant in Mauritius. In the year to the end of March 2022, the company hired an average of 6,977 full workers. time employees.
Among Princes’ assets are shares in Edible Oils, a British supplier of bottled oils. Princes co-owns the company through a joint venture with agri-food organization ADM. Edible Oils has 3 production facilities.
In June, Newlat said it was contemplating buying another company in the U. K.
The company has revealed its potential interest in trading in an inventory file detailing new investments in its business.
In the filing, Newlat said the deal was part of its efforts to support its “external growth strategy”, which includes M&A.
The company added: “Newlat Food is currently immersed in the evaluation of potential acquisitions, including that of a leading UK company with a turnover of over £1 billion. “
In today’s statement, Newlat stated that its “president Angelo Mastrolia and the entire control team are committed to taking advantage of a wonderful strategic opportunity capable of creating for all the group’s stakeholders. “
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