The shares of the Newlat Food food group soared on the Star list of Piazza Affari on Monday 17 June (+17.84% to 11.56 euros at closing). The market is optimistic, after the company announced on May 27th that it will purchase the English Princes group from Mitsubishi Corporation for £700 million (820 million euros): 650 million in cash and 50 in Newlat shares. Upon completion of the operation (closing expected in July) Newlat will change its name to New Princes Group. The new reality has a sales of 2.8 billion euros, 31 factories, approximately 8,800 employees and 30 brands. The industrial plan foresees organic growth in turnover with a CAGR of 3%, reaching 3.34 billion in 2030 And Net income above 100 million.
Intesa Sanpaolo: the operation is a game changer
Analysts and the market immediately welcomed the operation very positively: in just one month the shares rose by around 85%. On the Intesa Sanpaolo stock it raised from 7.7 to 14.8 euros the target price, confirming the buy recommendation. According to analysts «the acquisition of Princes is agame changer‘ for Newlat, which is becoming a €2.8 billion revenue operator, doubling its product category offering in complementary segments and strengthening its manufacturing know-how thanks to a total of 31 plants. We also see room for synergies from a purchasing, manufacturing and commercial perspective, as well as some cost and structure savings that are fully visible.”
In May Equita (buy rating) had judged the M&A positively, underlining a significant leap in size, greater negotiating capacity and production efficiency. (All rights reserved)
Posting time: 06/17/2024 5.50pm
Last update: 06/17/2024 6.11pm
