International food producer Princes has announced that Italian food company Newlat Food S.p.A (Newlat) intends to acquire the entire Princes Group from Mitsubishi Corporation.

Newlat is an international agro-food group that produces and distributes dairy, baby food, pasta, bakery, gluten-free, instant hot snacks and other food products. It produces under its own brands as well as private label in its operations across Italy, Germany, the UK and France.

The acquisition will reportedly encompass all current operations and brands in an agreement valued at £700 million. Following the completion of the intended acquisition of the Group, Newlat S.p.A and its group will become ‘New Princes Group’.

Princes said it will retain its Princes Limited identity and operate as a UK-based subsidiary of the New Princes Group. The Group will have a global operating network of 31 factories and a diversified portfolio across 10 categories.

The companies said that combining their businesses would “create a leading player in the European food industry” with a predicted revenue of around €2.8 billion and an adjusted EBITDA of approximately €190 million. However, management is “optimistic of increasing the group’s turnover to €5 billion by 2030”, aiming to “enhance” profit growth and “cement a strong position” in the markets in which it operates.

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. The intended sale remains an ongoing process and further information will be shared in due course.”