Food giant NewPrinces has completed the purchase of Carrefour’s Italian retail business for around €1bn.
It is New Princes’ latest expansion in Italy after it bought Heinz’s Italian baby food business and took over a Diageo factory in northern Italy earlier this year.
It is unusual for a manufacturer to buy a retailer but the deal is part of the company’s plans to vertically integrate its supply chain by owning both manufacturing and retail operations.
The acquisition of Carrefour Italia will make NewPrinces the second largest Italian agri-food group in terms of turnover with consolidated revenues over €7bn.
Carrefour Italia – now known as Princes Retail Spa - operates 1,027 stores and reported net sales of €3.7bn last year, according to information published on the NewPrinces website.
The deal was completed after the European Commission approved the deal without raising any objections.
NewPrinces, formerly known as Newlat, started out as a small milk company before growing rapidly through acquisitions. It now owns dozens of major food brands including Napolina, Flora, and Branston.
“The acquisition of Carrefour Italia represents a significant milestone in our group’s growth trajectory,” said CEO Angelo Mastrolia.
“We have made the bold decision to invest in a strategic asset for Italy, with the aim of relaunching a widespread retail network and maximising synergies between industry and distribution.”
In October, NewPrinces floated its tinned tuna brand Princes on the London stock exchange. Its price has since fallen around 3%.
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