Newlat, an Italy-based food manufacturer, has ceased negotiations to purchase UK tinned fish and beverage business Princes after their latest offer was turned down. In December, Newlat confirmed its involvement in the race to buy Princes from Japan-based conglomerate Mitsubishi Corp. A recent filing indicated that Newlat had submitted a new proposal for Princes, factoring in softening demand and lower inflation in the UK’s “difficult market environment,” but Mitsubishi Corp. rejected the offer. Newlat has expressed openness to a deal if Princes owner is willing to reconsider their latest proposal.
The Italian group emphasized its acquisition profile and continuous pursuit of growth opportunities through external lines supported by various financial partners. Mitsubishi acquired Liverpool-based Princes in 1989, which at the time focused primarily on the import and distribution of shelf-stable food such as tinned fish. Princes’ product range now also includes edible oils and beverages.
In December, it was reported by Sky News that the asking price for Princes was around £400m ($503m). Last month, Princes disclosed its move into the red in its last financial year, with a loss of £42.7m compared to the previous year’s profit of £17.2m. Turnover stood at £1.74bn, against £1.44bn in the previous year, with higher selling prices aiding Princes’ top line.
