Princes invests in Italian tomato business
FOOD manufacturer Princes has launched a new business in Italy partnership with one of its key tomato suppliers.
The Liverpool-based group, which owns the Napolina canned tomatoes brand, had created a new venture, Prices Industrie Alimentari (PIA) with long term supplier AR Industrie Alimentari.
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.
The deal will have to be cleared by European Commission regulators, Japan-owned Princes said.
PIA is expected to generate annual sales of more than €200m, 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 company said the deal significantly enhances its international scale and will also give it access to new customers and markets. It will also supports the Napolina business too 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.
