NewPrinces has entered a deal to buy Kraft Heinz’s Italian baby-food business.
Under the terms of the transaction, Italy-based NewPrinces is paying €120m ($140m) for assets including five brands: Plasmon, Nipiol and Dieterba infant food; plus gluten-free brand Biaglut and low-protein products sold under the Aproten brand.
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The deal also takes in Kraft Heinz’s production facility in Latina in central Italy.
The factory employs around 300 people and produces biscuits for the Plasmon brand.
The plant will also still make Heinz-branded baby food for the UK market under a “co-packing agreement”, NewPrinces said in a statement issued yesterday (9 July).
NewPrinces said today (10 July) the acquisition “significantly strengthens” its position in a “key, high-margin segment such as baby and specialised food, generating important industrial, commercial and innovation synergies”.
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By GlobalDataIt emerged in February Kraft Heinz had hired advisers to work on the potential sale of Plasmon. In 2019, it was reported Kraft Heinz had put Plasmon up for sale shortly after the US giant appointed FMCG veteran Miguel Patricio as CEO. Kraft Heinz never publicly acknowledged the plan. Reports later in the year said the idea had been shelved.
Kraft Heinz said today the sale of the assets fits its plan to “drive profitable growth” through other products including Heinz tomato ketchup.
NewPrinces plans to increase production capacity and “operational flexibility” with formats such as pouches and baby snacks. The company said it also wants to “accelerate the internationalisation” of Plasmon through its commercial presence in more than 60 countries.
Chairman Angelo Mastrolia added:“This acquisition is a moment of great pride and emotion. Bringing home brands like Plasmon, Nipiol, BiAglut, Aproten and Dieterba fulfils a vision we have pursued for years: to create an Italian multinational company that gives new life to beloved national brands with deep roots in our country’s identity. With this milestone, we reaffirm our commitment to Italy and to the excellence of its food industry.”
The deal awaits regulatory review and is expected to be completed by the end of the year.
Kraft Heinz has entered a “mandatory consultation period” with local unions in Italy.
Willem Brandt, president of Europe and Pacific Developed Markets at Kraft Heinz, said: “It’s a great example of how we’re intentionally and proactively managing our portfolio to accelerate organic growth and drive sustainable, long-term value.”
In May, Kraft Heinz said it was weighing up “strategic transactions to unlock shareholder value”.
In a brief statement, the Heinz ketchup and Jell-O desserts owner said on 20 May the deliberations had been going on for months.
“At Kraft Heinz, our goal has always been to make high-quality, great-tasting food for all and to keep consumers at the forefront of all we do, enabling us to drive profitable long-term growth and value creation,” Kraft Heinz CEO Carlos Abrams-Rivera said. “Consistent with this goal, over the past several months we have been evaluating potential strategic transactions to unlock shareholder value. As we look to the future, we will continue to inspire and delight consumers with our iconic brands, fulfilling our mission.”
Newlat Food rebranded itself to NewPrinces following its 2024 acquisition of UK food-and-drinks group Princes from Japanese conglomerate Mitsubishi Corp.
In May, Newlat announced it was considering “among other things, an initial public offering and listing of a substantial part” of its business.
