The company based in Liverpool is reportedly considering two assets that are being divested by major multinationals, in addition to a smaller enterprise founded by an entrepreneur.
Princes Group successfully raised £400 million through its London IPO last year and aims to leverage a growth strategy focused on mergers and acquisitions, targeting a revenue increase of between £1 billion and £1.5 billion in the medium term.
This development comes as the company has announced plans to implement price hikes to mitigate the considerable financial challenges stemming from the crisis in the Middle East, particularly regarding rising fuel and shipping costs.
During a recent call with analysts, CEO Simon Harrison acknowledged that the group is experiencing “substantial” cost increases throughout its supply chain, and indicated that measures will be taken to “recover them.”
On a brighter note, Princes reported an impressive 46% year-on-year revenue increase, driven by contributions from businesses under the common control of majority shareholder NewPrinces.
However, this growth partially obscured a 6.5% decline in like-for-like sales, bringing the total down to £1.9 billion for the company’s first complete year after its debut on the London Stock Exchange.
“What we’re looking for is scale. We have a significant customer base, so it’s essential that we achieve considerable scale to serve them effectively,” Harrison remarked.
He added, “We also seek industrial capability. One of our goals is to manufacture nearly everything we offer within our own factories, making that industrial expertise our second priority.”
Furthermore, he mentioned, “The third factor we consider is, when possible, a complementary vertical. Examples include Diageo in alcohol and Plasmon in baby food. Lastly, we are particularly interested in underperforming assets from multinational corporations, as this presents opportunities for us to apply our turnaround skills and unlock synergies.”
