Newlat Food has agreed a deal to buy a factory in northern Italy from spirits giant Diageo.
The agreement – terms of which will be made public once the transaction has closed – will see Newlat purchase the factory, retain its 350-strong workforce, and maintain production.
It was first announced by Italy’s industry minister late on Monday (12 May).
Diageo had revealed plans to close the facility – its only production site in Italy – in December.
The transaction would “allow Newlat Food to complete and consolidate its offering in the beverage segment, a sector in which the group already generates over €350m in revenues in the United Kingdom”, The company said in a statement.
The plant – located in Santa Vittoria d’Alba in the Piedmont region of Italy – had “experience in the production of a wide range of alcoholic beverages, ready-to-drink products, as well as low & no-alcohol solutions”, it noted.
Newlat was set to change its name to NewPrinces following the acquisition of British tinned fish, sauces and juice supplier Princes for £700m last year, Reuters reported.
Since acquiring Princes, Newlat has had to contend with worker unrest at factories across the UK, after workers rejected a 3% pay offer from their new owners.
Industrial action took place at Princes sites in Bradford, Cardiff, Glasgow, Long Sutton and Wisbech across December and January.
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