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Princes Invests in New Italian Tomato Processing Business

Date:24 January 2012

Type:Business News

Source:Food Ingredients First

Sector:Fruits & Vegetables

Summary:The factory, which has been in operation since 2009, is one of the most modern and efficient facilities of its kind in Europe and produces ambient tomatoes and other Italian products. Completion of the transaction is subject to certain conditions including European Commission clearance.

24 Jan 2012 --- Princes has exchanged contracts with long-term Italian tomato supply partner AR Industrie Alimentari SpA (ARIA) to create a new company in Italy, Princes Industrie Alimentari SrL (PIA).

PIA will be majority (51%) owned by Princes and will acquire ARIA’s 120,000 sq metre processing factory in Foggia, Italy. The factory, which has been in operation since 2009, is one of the most modern and efficient facilities of its kind in Europe and produces ambient tomatoes and other Italian products. Completion of the transaction is subject to certain conditions including European Commission clearance.

The business is expected to generate annual sales of more than €200 million, will employ up to 1,200 people at its seasonal peak and process in the region of 400,000 tonnes of fresh tomatoes annually.

The investment significantly enhances Princes’ scale internationally and provides access to new customers and markets. It also supports the further growth of the Napolina business by giving Princes a more direct relationship with its supply partners in Italy.

Ken Critchley, Managing Director of Princes, said: “This is a significant development for our group and an important step in our strategy for further international growth. PIA creates new partnerships for our business and broadens our access to new customers and markets. The company will continue to support the agricultural community in Italy by developing strong relationships with local growers and suppliers.”

The latest investment follows Princes’ acquisition of two major UK canning sites at Long Sutton and Wisbech in East Anglia in July last year. These acquisitions, along with PIA, are expected to increase annualised group revenues to more than £2bn.

The transfer of ARIA’s assets into the new PIA company is expected to take place within the next few months, subject to regulatory approval.

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