The deal sees NewPrinces securing 100% of the corporate capital of Plasmon S.r.l. – a newly established company comprising the popular Italian baby food brand Plasmon, alongside Nipiol, BiAglut, Aproten and Dieterba, and the production site in Latina, Italy.
The addition of the ‘Plasmon Business’ is set to strengthen the Group’s position in the high-margin baby food and specialised nutrition segment.
The transaction will see Plasmon’s current business perimeter reunited with Princes Group’s Ozzano Taro production facility – acquired from The Kraft Heinz Company in 2015 – which was historically a Plasmon factory and continued to manufacture Plasmon infant formula until very recently.
Plasmon’s Latina production facility, which specialises in biscuits, jars and pouches, is complementary to the Ozzano Taro plant, which focuses on liquid milk and infant powdered formula.
Operation logistics
Princes Italia S.p.A – a direct subsidiary of Princes Group – has entered into an operating asset lease agreement with Plasmon, which will see all operations relating to the Plasmon Business carried out under its scope.
Under the operating lease, Princes Italia will make yearly rent payments of €3 million, as well as 1.5% of revenues derived from the operation of the business as variable consideration.
The lease has an initial duration of three years and can be renewed at Princes Italia’s sole discretion. The parties retain the right to transfer of the assets relating to the Plasmon Business directly to Princes Group at a later stage.
This lease structure allows the business to unlock synergies without deploying additional upfront capital. The Board has said the preservation of capital is in stakeholders “best interests” as it will enable further value-accretive M&A and strategic growth opportunities, alongside predictable cash flows, reduced asset risk, and the flexibility to extend or exit the arrangement.
The Latina plant employs around 300 people, and the business, including the factory and its employees, will continue to operate as usual under the Group’s ownership.
The site will also continue to produce Heinz Baby Food for the UK market under a co-packing agreement.
‘Reinforcing our baby food leadership’
In the fiscal year ended 31 December 2024, Plasmon generated revenues of €170 million and an EBITDA of €17 million. It is expected that Plasmon’s revenues will grow at a c. 3% CAGR over the next years, with EBITDA margin improving progressively to 15%.
“The integration of the Plasmon Business represents a strategically important step for Princes Group. It reinforces our leadership in baby food and specialised nutrition, builds on long-standing industrial expertise and reunites highly complementary assets within the Group,” said the Chairman of Princes Group, Angelo Mastrolia.
“We believe this transaction strengthens our European industrial platform and supports the continued development of our core categories over the long term."
