REG - Princes Group PLC - Plasmon business to join Princes Group perimeter

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RNS Number : 3108N  Princes Group PLC  31 December 2025

31 December 2025

 Princes Group plc

("Princes Group", the "Group" or the "Company")

 

Plasmon business to join Princes Group perimeter

 

Princes Group plc (LSE: PRN), a leading international platform in the United
Kingdom and European food and beverage sector, is pleased to announce that its
parent company, NewPrinces S.p.A. ("NewPrinces"), has today completed the
acquisition from The Kraft Heinz Company of 100% of the corporate capital of
Plasmon S.r.l. ("Plasmon"), a newly established company owning the business
relating to the manufacturing, packaging, marketing, selling and distribution
of baby food and specialty nutrition food products, including the number 1
baby food brand in Italy, Plasmon, in addition to other attractive brands such
as Nipiol, BiAglut, Aproten and Dieterba, as well as the Latina, Italy,
production plant (the "Plasmon Business") for €124.3 million in cash.

 

In line with disclosures previously made to the market, Princes Group serves
as the primary holding vehicle for food and beverage manufacturing assets for
NewPrinces. Accordingly, Princes Italia S.p.A. ("Princes Italia"), a direct
subsidiary of Princes Group, has entered into an operating asset lease
agreement (the "Operating Lease") with Plasmon, with effect from 1 January
2026. Under the terms of the Operating Lease, all operations relating to the
Plasmon Business will be carried out by Princes Italia. The parties have
reserved the right to assess, at a later stage, the potential transfer of the
assets relating to the Plasmon Business directly to Princes Group.

Under the Operating Lease, Princes Italia is required to make yearly rent
payments of €3 million, as well as 1.5% of revenues derived from the
operation of the business as variable consideration. The Operating Lease has
an initial duration of three years and can be renewed at Princes Italia's sole
discretion by giving six months' notice to Plasmon.

 

The Company's Related Party Transaction Committee has approved the Operating
Lease structure, noting that it provides a capital-light means of operating
the business and enables the of unlocking synergies without deploying
additional upfront capital, following NewPrinces' €124.3 million acquisition
of Plasmon. The Board considers it in shareholders' best interests to preserve
capital in order to access further value-accretive M&A and strategic
growth opportunities, while benefiting from predictable cash outflows, reduced
asset risk and significant flexibility to extend or exit the arrangement.

 

Commenting on the transaction, the Chairman of Princes Group, Angelo
Mastrolia, said:

"The integration of the Plasmon Business represents a strategically important
step for Princes Group. It reinforces our leadership in baby food and
specialised nutrition, builds on long-standing industrial expertise and
reunites highly complementary assets within the Group. We believe this
transaction strengthens our European industrial platform and supports the
continued development of our core categories over the long term."

 

About the Plasmon Business

In the fiscal year ended 31 December 2024, Plasmon generated revenues of
€170 million and an EBITDA of €17 million.

Founded in Milan in 1902, the Plasmon brand is one of Italy's most iconic food
brands, with a heritage spanning over 120 years. Registered as a "Marchio
Storico di Interesse Nazionale" (Historic Trademark of National Interest),
Plasmon has become synonymous with trust, safety, and nutritional quality for
generations of Italian families. Its distinctive orange packaging and
signature biscuit are deeply rooted in the country's collective memory and
continue to play a central role in early childhood nutrition. Plasmon is the
No.1 baby food brand in Italy and a category leader across biscuits, purees,
cereals and snacks, trusted by healthcare professionals and parents alike. Its
robust brand equity, deep-rooted consumer trust, and unparalleled distribution
footprint make it a powerful platform for value creation.

The Nipiol brand, included in the perimeter, is another relevant brand in the
Italian baby food market and is a stable guarantee for parents with its
quality and easy to use products. Aproten and Biaglut are two specialty food
brands with a strong expertise in nutrition, respectively in low proteins and
gluten free products, that are a reference for consumers across Italy.

The Latina factory is a high-volume facility that produces a wide range of
infant food products, including approximately 1.8 billion Plasmon biscuits
annually for the Italian market. The plant employs around 300 people, and the
business, including the factory and its employees, will continue to operate as
usual under the Group's ownership. Importantly, the Latina plant will continue
to produce Heinz Baby Food for the UK market under a co-packing agreement.

Strategic Rationale

The addition of the Plasmon Business strengthens Princes Group's position in
the attractive, high-margin baby food and specialised nutrition segment. The
transaction reunites Plasmon's current business perimeter with Princes Group's
Ozzano Taro production facility - acquired from The Kraft Heinz Company in
2015 - which was historically a Plasmon factory and continued to manufacture
Plasmon infant formula until very recently. This industrial integration
further consolidates the Group's leadership position in baby food and
specialised nutrition products across Italy and Europe.

The industrial rationale for the transaction is supported by compelling
operational synergies and scale benefits. Plasmon's Latina production
facility, which specialises in biscuits, jars and pouches, is complementary to
the Ozzano Taro plant, which focuses on liquid milk and infant powdered
formula. Together, these assets create a highly integrated manufacturing
footprint, enhancing production efficiency, broadening the product portfolio
and establishing a comprehensive, pan-European industrial platform across the
full range of baby food and specialised nutrition categories.

It is expected that the integration of the Plasmon Business will generate
significant industrial, commercial, and innovation synergies. These will allow
Princes Group to:

·    Leverage the integrated R&D centre to accelerate the development
of new formulations and expand the offering in the premium and organic
segments.

·    Increase overall production capacity and operational flexibility
through the integration of innovative formats, while maximising utilisation
across both the Latina and Ozzano Taro facilities.

·  Accelerate the internationalisation of Italy's most loved baby food
brand by leveraging the Group's established commercial presence in over 60
countries and distribution network in key European markets.

 

The transaction is consistent with Princes Group's long-term strategy of
strengthening its presence in core, value-added food categories and leveraging
its industrial and commercial capabilities across Europe.

Based on current expectations, management believes that the integration of the
Plasmon Business has the potential to support sustained revenue growth and
margin improvement over the medium term. In particular, management expects
Plasmon's revenues to grow at a c. 3% CAGR over the next years, with EBITDA
margin improving progressively to 15%, supported by operational efficiencies,
scale benefits and the implementation of the Group's commercial initiatives.

 

Further updates will be provided as appropriate, in line with the Company's
disclosure obligations.

 

ENDS

 

Enquiries

For further information, please contact:

 Princes Group plc                                              investors@princesgroup.com (mailto:investors@princesgroup.com)
 Benedetta Mastrolia, Investor Relations Director

 Peel Hunt LLP (Corporate Broker)                               +44 (0) 2074188900
 James Thomlinson / Andrew Clark / Finn Nugent / Ella Hastings

 Barabino and Partners UK                                       princes@barabino.co.uk (mailto:princes@barabino.co.uk)

 (Financial PR communications)                                  +44 (0) 7542846844
 Georgia Colkin / Caroline Merrell

 

 

Princes Group plc

Princes Group is a leading international platform in the United Kingdom and
European food and beverage sector. The Group operates across five business
units: Foods, Fish, Italian, Oils, and Drinks and holds leading positions in
both branded and customer own brand products.

The Group's branded portfolio includes well-known, trusted brands such as
Princes, Napolina, Branston, Batchelors, Flora, Crisp 'N Dry, Delverde, Naked
Noodle, and Vier Diamanten.

By combining industrial expertise with long-standing supply partnerships,
Princes Group is a trusted partner to a diverse range of blue-chip customers,
including major food retailers, B2B partners, and the foodservice industry,
reaching over 8,000 clients globally and exporting to more than 60 countries.

Headquartered in Liverpool, UK, Princes Group generated £2.1 bn pro forma
revenues in the twelve months ended 31 December 2024, employs approximately
7,800 people and operates 23 production facilities across the United Kingdom,
continental Europe, and Mauritius, supported by 21 warehouses and distribution
centres and three offices in the UK, Poland, and the Netherlands.

With a strong production network, the Group is well-positioned for future
growth, consistently delivering quality, innovation, and reliable supply
across multiple categories, while upholding its commitment to excellence and
long-term customer relationships.

For more information, visit www.princesgroup.com (http://www.princesgroup.com)
.

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