Princes' shopping list could boost turnover to £1.5bn
Princes, the canned food to soft drinks giant, is in the due diligence stage of two potential acquisitions which could help it reach its goal of breaking through the £1.5bn sales barrier two years ahead of schedule.
Speaking from the company's sauces, spreads and instant meals factory in Chichester, marketing chief Tim Jolly told Food Manufacture: "Mitsubishi [Princes' parent company] hasn't turned us down yet when we have come to them with an acquisition opportunity and explained how we can get a return on investment. We've made 14 successful deals in 18 years, so we have a fantastic track record."
He added: "We are on schedule to hit £1bn in turnover this calendar year, but if the two deals we are working on now come off, we could get to £1.5bn a lot sooner than 2009."
The decision last year to scrap the old divisional structure, which split Princes into three divisions (manufacturing, international trading, and soft drinks), had also made it far easier to integrate new acquisitions, said Jolly. "You don't want to buy a business and then divide it up to fit your trading structure."
Mitsubishi was also prepared to invest to ensure that Princes' manufacturing facilities remained world class, he added.
"They came up with £15M to set up this factory in 2002, and have supplied a further £10M since for capital equipment and other things.
"We're competing on a world stage now. While it might be hard for a continental European manufacturer to enter the UK with a brand, it could easily pick up own-brand business, so you have to be the lowest cost producer.
"We will not be undersold by anyone in Europe."
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