UK-based food and drinks manufacturer Princes has confirmed it is to be fully acquired by Italian peer Newlat.

The global canned foods maker is being sold by the Japanese multinational, Mitsubishi Corp. for £700m ($893.6m).

Following the transaction, Princes and Newlat Food will merge under the new name New Princes Group.

A Princes Group spokesperson told Just Food: “the final purchase agreement is expected to be signed in the coming months.”

The acquisition is contingent on consultation with the Dutch Works Council of Princes and European Works Council, as well as “receipt of a number of customary regulatory approvals”, and “finalisation of the group’s audited accounts”.

When asked whether the deal would affect any jobs at the business, the spokesperson added: “The business is being bought as a whole and it’s not possible to offer any detail on potential changes as the process is not complete yet”.

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Newlat’s purchase is expected to bring the New Princes Group total annual revenue to circa €2.8bn, and adjusted EBITDA to around €190m.

The merged company intends to see €5bn in annual turnover by 2030. It also expects to boost profits “through a combination of cost and structural synergies”

Princes is still expected to “retain its identity… as a UK-based subsidiary of the New Princes Group”, it said.

Under new ownership, it will see its number of global production facilities increase to 31. It currently manages 12 production plants in the UK, Europe and Mauritius, and works with a number of partner plants in Hungary, Spain, Italy, Canada, South America and Thailand.

Princes’ portfolio includes canned food brands such as Branston baked beans, Batchelors mushy peas and Crosse & Blackwell ready-to-eat soups, aas well s Italian foods brand Napolina and the squash maker Jucee.

The Liverpool-headquartered business sells its range of branded and unbranded products via major retailers in the UK. It also supplier international retailers across the Pacific Rim, Middle East and Africa with canned foods, edible oils and its Italian foods range,

Reggio Emilia-based Newlat first signaled its intentions to snap up Princes last December, when it confirmed it was in “very advanced” negotiations with Mistubishi Corp.

These talks were then paused in February, as its latest offer, which accounted for a drop in demand and lower inflation in the UK, was rejected by Mistubishi.

Commenting on the news, Princes CEO, 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.”         

Founded in 2004, Newlat produces a range of brands across its milk and dairy, pasta and bakery, ready-meals and specialist snacks segments. These include Mug Shot instant soups, Delverde dried pasta, Sansepolcro crostini and Matese milk and cheese.

The company also produces a range of private-label gluten-free, ready-to-eat, dairy, low-protein and wheat and baby food products.

It operates in Italy, Germany, the UK and France, through its subsidiary groups Symington’s, EM Foods, Centrale del Latte d’Italia, and Newlat Deutschland.