Princes Group, the Italian-owned food giant behind popular brands like Princes tuna and Napolina pasta, is gearing up for a significant stock market flotation next month. Valued at an estimated £1.5 billion, the company is actively exploring avenues to include retail investors in its Initial Public Offering (IPO), aiming to boost individual participation on the London Stock Exchange.
Key Takeaways
- Princes Group plans a £1.5 billion stock market flotation by the end of October.
- The company aims to attract retail investors to its IPO.
- The IPO is intended to provide capital for acquisitions and revenue growth.
Ambitious Growth Plans
Princes Group’s primary motivation for going public is to secure the financial "firepower" needed to pursue further acquisitions. The company has set an ambitious target of increasing its annual revenue by £1.5 billion over the medium term, building upon its current £2.1 billion revenue in 2024. This expansion strategy is a key message being communicated to potential institutional investors.
Corporate Structure and History
The business, now operating as New Princes, is owned by an Italian entity that acquired the Princes food business from Mitsubishi for £700 million last year. Angelo Mastrolia, the majority owner, chairs New Princes, which has prior experience with public markets, having already floated its dairy business on the Milan stock exchange. New Princes is also in the process of acquiring the Italian arm of the French retailer Carrefour. While Princes Group will be listed in London, New Princes intends to retain a majority stake in the business.
With roots tracing back to Liverpool in 1880, Princes has a long-standing presence in the UK, recently purchasing the iconic Royal Liver building in the city. The company boasts a diverse portfolio, producing its own brands such as Crisp ’N Dry vegetable oil and Crosse & Blackwell, alongside licensed products like Flora, Branston, and Batchelors. Its acquisition of Symington’s further expands its reach into instant noodles, sauces, and meals.
Investor Proposition
Investors are being presented with a compelling case, highlighting potential cost savings of £30 million through synergies, such as integrating the Princes tuna business with Symington’s. Opportunities for increased sales within major supermarkets are also a key part of the investment narrative. Princes generates a significant 70 per cent of its revenue in Britain, where it employs 2,500 of its total 8,000 staff. The company is led by Simon Harrison, who brings two decades of experience in the food and drink sector. Peel Hunt and BNP Paribas are reportedly advising on the IPO.
