Liverpool-based Princes Group said it agreed to be bought by Italian pasta, bread and dairy giant Newlat Food for £700 million, creating one of Europe’s biggest food companies. 

Princes, owned by Japanese conglomerate Mitsubishi Corporation, made its name as a seafood company and has grown into one of the UK’s largest food and drink groups, with seven manufacturing sites in the UK and some operations overseas.

Princes Group’s Chief Executive Officer, Simon Harrison, said: “This is an exciting prospect for Princes, and we are delighted that Newlat share our confidence in the Group’s strategic growth plans, brand strategy, operational excellence and people culture.” He said the sale is ongoing and further information will be shared in due course.           

Newlat, which makes and distributes dairy, baby food, pasta, bakery, snacks and specialty food products, has operations in Italy, the UK, Germany and France. 

Following the completion of the acquisition, Newlat will become New Princes Group and Princes will continue to operate as a UK-based subsidiary of the enlarged group, which will have 31 factories across the world. 

Combining the two entities will create a food company with annual revenue of about €2.8 billion and an adjusted EBITDA of about €190 million. Management said it was looking to increase the group’s turnover to €5 billion by 2030.