Italy's Newlat Food to buy Britain's Princes for nearly $900 mln (updated)

Newprinces SpA

27/05/2024 08:08

(Adds detail, background, shares)
       May 27 (Reuters) - Italy's Newlat Food  NWLF.MI  said on
Monday it would buy British food group Princes for 700 million
pounds ($892 million) to create the first Milan-based "unicorn"
- or billion-dollar startup - in the food sector.
    After closing the deal, the group will rebrand itself as New
Princes and will have a consolidated turnover of about 3 billion
euros ($3.25 billion) and consolidated equity of over 700
million euros, Newlat said in a statement. 
    "Newlat Food will become the largest food company listed on
the Milan Stock Exchange, reinforcing its role as a key
international player," Newlat Food chairman Angelo Mastrolia
said in the statement.
    The group said it expects a net debt to core profit (EBITDA)
ratio of one by the end of 2026, and an average annual free cash
flow of over 100 million euros between 2024 and 2028.
    It will present its 2030 combined business plan on June 4,
Newlat added.
    The deal, which Newlat expects to complete by the end of
July, includes the sale of 50 million pounds worth of Newlat
shares to Mitsubishi Corporation  8058.T , which owns Princes,
Newlat said in a statement.
    Milan-listed shares in Newlat were up around 8.5% in early
trade.
    ($1 = 0.7849 pounds)
    ($1 = 0.9219 euros)

 (Reporting by Alessandro Parodi, Philippe Leroy Beaulieu;
Editing by Kirsten Donovan and Mark Potter)
 ((Alessandro.Parodi@thomsonreuters.com;
philippe.leroybeaulieu@thomsonreuters.com))