(Alliance News) - Newlat Food Spa announced Monday that it has signed an agreement to acquire 100 percent of the share capital of Princes Limited, a historic UK-based food group founded in Liverpool in 1880 and currently owned by Mitsubishi Corporation.

The consideration set on a debt free and cash free basis is GBP700 million, including GBP650 million to be paid in cash and GBP50 million to be paid in Newlat Food shares. The transaction will be financed through the company's available cash, shareholder financing and a EUR300 million loan to be provided by a pool of leading international banks. The pool, led by Unicredit and BNL BNP Paribas as Global Coordinator and Bookrunner, includes Rabobank, Commerzbank, Banco BPM, and BPER.

Princes generated consolidated revenue for fiscal year 2024 ending March 31 of GBP1.71 billion and adjusted Ebitda of GBP100.54 million. Adjusted net income reached GBP13.03 million.

With the acquisition of Princes, "Newlat Food will achieve consolidated sales of approximately EUR3 billion and a strong position in new categories in the UK market," the statement said.

Specifically, Newlat Food's combined pro-forma consolidated figures will show sales of EUR2.8 billion, adjusted Ebitda of EUR188 million, and adjusted net income of EUR31.44 million.

Pro forma net debt reaches EUR616 million, with a net debt/Ebitda ratio of 3.28x, while the net debt/Ebitda ratio is anticipated to be less than 2.5x at the end of the current fiscal year.

"The group will double the range of product categories it offers to its customers, becoming one of the leading multi-brand and multi-product companies in the food sector in Europe, thanks to an increasingly exclusive industrial know-how and a unique production capacity, thanks to its 31 factories," the company continued in the statement.

Closing of the deal, subject to obtaining antitrust approvals from the relevant authorities and consultation with the European and Dutch works councils within the Princes group, is expected by the end of July 2024.

Newlat Food closed Friday up 0.8 percent to EUR6.34 per share.

By Chiara Bruschi, Alliance News reporter

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