A is born on the stock exchange food hub with a turnover of almost 3 billionthe first unicorn listed on Piazza Affari and one of the main multi-brand and multi-product companies in the food sector in Europe. Newlat Fooda leading company in Italy in the dairy sector with brands such as Giglio, Ala, Mukki and Centrale del latte di Torino and Vicenza, which soon diversified into the pasta (Del Verde) and bakery products sectors, has consolidated its presence at abroad thanks toacquisition of 100% of Princes Limiteda historic British multi-brand food group.
The operation
The transaction, which is expected to close by the end of July 2024, involves the acquisition of 100% of the share capital of Princes Limited by Mitsubishi Corporation, for a consideration, on a debt free and cash free basis (without taking on debts and liquid resources) of £700 millionof which 650 million to be paid in cash 50 million to be paid in shares Newlat Food.
The planned operation will be financed for 650 million through the available liquidity by Newlat Food, a shareholder financing of 200 thousand euros by Newlat Group SA, parent company with a 61.6% share of the share capital, and a loan of 300 million provided by a pool of leading international banks (Unicredit, BNL BNP Paribas as Global Coordinator and Bookrunner, Rabobank, Commerzbank, Banco BPM and BPER).
Furthermore, Mitsubishi will become a shareholder of Newlat Food, thanks to the sale of 9,319,481 shares by Newlat Group SA at the price of 6.3 euros per share, for a value of 50 million euros.
Who is Princes
Princes Limited Princes is one of the largest food and drink groups in Europe, founded in Liverpool in 1880. For the 2023/2024 fiscal year, which ended March 31, it generated consolidated revenue of £1.71 billion and an adjusted EBITDA of £100.5 million. Adjusted Net Profit exceeded £13m.
With the planned acquisition of Princes, i pro forma consolidated data (combined) of Newlat Food will show a turnover of 2.8 billion euros, an adjusted EBITDA of 188 million and an adjusted net profit of 31.44 million.
The first unicorn on Euronext Milan
Princes represents the last important piece of a plan dtwenty-year growth of Newlat Food, which has seen the group evolve not only in terms of business volumes but also from a structural and financial point of view. The deal represents the largest acquisition of a British company by an Italian company in the food sector.
Newlat entered listed on the STAR segment of Euronext Milan in October 2019. From that moment on, a tumultuous growth path began in Italy, with the acquisition of the already listed Centrale del Latte in Turin, and abroad, thanks to the acquisition of the British Symington's and EM Foods in France.
The new entity, which will be called New Princes Group, will prepare to deal new challenges while maintaining its original values, in particular the priority on cash generation. The new group intends to maintain one of the best organic growth rates in the sector, constantly improve profitabilitythanks also to the expected structural and cost synergies, e generate robust cash flows thanks to strategic implementation in key areas such as procurement, working capital management.
