Home / Business and Economy / Food Giant NewPrinces Acquires Carrefour's Italian Stores in €1bn Deal
Food Giant NewPrinces Acquires Carrefour's Italian Stores in €1bn Deal
25 Jul
Summary
- NewPrinces acquiring Carrefour's 1,000+ stores in Italy for €1bn
- Deal aims to integrate production and distribution, boost synergies
- NewPrinces pledges €200m to invest in development, logistics, and brand renewal
In a significant move, the Italian food and drinks company NewPrinces is acquiring Carrefour's operations in Italy for €1bn ($1.18bn). The deal, described as "vertical integration between production and distribution," will see NewPrinces take over Carrefour's store network of more than 1,000 sites across regions like Piedmont, Lombardy, and Liguria.
The acquisition is expected to close by the end of the current third quarter, subject to regulatory approval. NewPrinces, which previously acquired the UK-based Princes Group and has recently entered an agreement to buy baby-food brands from Kraft Heinz, sees this as a strategic move to strengthen its position in the Italian market.
As part of the transaction, Carrefour has committed to reinvest €237.5m in its Italian stores to support the "industrial relaunch and operational continuity." In turn, NewPrinces has pledged €200m to invest in "development initiatives, logistics innovation and brand renewal" to optimize synergies between production and distribution and enhance its brand portfolio.
The acquisition comes as Carrefour's stores in Italy have faced challenges, with the retailer reporting a €67m loss in recurring operating income and negative free cash flow of €180m in 2022. Carrefour acknowledged the agreement with NewPrinces, stating that the deal will allow the company to refocus on its key markets in Europe and Latin America.
