Plasmon Back in Italian Hands: NewPrinces Finalizes Acquisition

Iconic Italian baby food brand Plasmon is returning to Italian ownership. NewPrinces S.p.A. has finalized the acquisition of 100% of Plasmon from Heinz Italia, a subsidiary of The Kraft Heinz Company, completing the deal announced on July 9. The closing involved a final purchase price of €124.3 million, paid entirely in cash.

Acquisition Details

The acquisition encompasses the entire industrial and commercial platform of baby food and specialized nutrition, along with well-known brands like Plasmon, Nipiol, BiAglut, Aproten, and Dieterba, as well as the production plant in Latina.

In 2024, the business generated revenues of approximately €170 million and an EBITDA of €17 million.

Kraft Heinz's Strategy

For Kraft Heinz, this operation aligns with its strategy to refocus on the Taste Elevation platform, with increased attention on the Heinz and Kraft brands, which continue to demonstrate solid growth in Italy's retail and away-from-home channels.

NewPrinces' Perspective

For NewPrinces, this acquisition marks a key step in strengthening its presence in high-margin segments.

"The completion of this operation represents the fulfillment of a long-term strategic vision," commented President Angelo Mastrolia.

"Bringing back to Italy brands like Plasmon, Nipiol, BiAglut, Aproten, and Dieterba, deeply rooted in our country's identity, along with a highly efficient production plant like the one in Latina, strengthens our position as a leading platform in the high-margin segment of infant food and specialized nutrition in Italy and Europe".

The stated goal is now the industrial and commercial integration of the Plasmon perimeter, leveraging synergies with existing group activities to generate value throughout the supply chain.

Here are the key brands included in the acquisition:

Plasmon's History and Operations

Founded in Milan in 1902, Plasmon is one of Italy's most recognizable food brands and is registered as a Historical Brand of National Interest. As a leader in baby food in Italy, it dominates categories such as biscuits, purees, cereals, and snacks, and enjoys a strong reputation among families and healthcare professionals.

Central to the operation is the Latina plant, a high-capacity site that produces approximately 1.8 billion Plasmon biscuits annually and employs around 300 people. The activity will continue without interruption under the new ownership and will continue to produce for Heinz Baby Food destined for the UK market through a co-packing agreement.

Kraft Heinz's Commitment to Italy

"We believe that the business is well-positioned to continue its development path under the leadership of the NewPrinces Group, a leader in the food & beverage sector and an ideal partner for the growth of these historic brands," highlighted Kraft Heinz Italia CEO Carmela Bazzarelli.

"Kraft Heinz reaffirms its commitment to Italy, where it will continue to focus on the growth of the Taste Elevation platform with the Kraft and HEINZ brands, supported by new investments and a greater strategic focus made possible by this operation".

Strategic Rationale

The industrial rationale behind the operation aims to create an integrated pan-European platform in baby food. The Latina plant, specializing in biscuits, purees, and pouches, complements the Ozzano Taro plant, which focuses on liquid milk and infant formulas.

Here's a summary of the financial impact:

Future Projections

According to management estimates, the integration could support revenue growth for Plasmon with a CAGR of approximately 3% and a progressive improvement in the EBITDA margin up to 15%.

Operational Transfer

From January 1, 2026, all operational activities of Plasmon will be transferred to Princes Italia S.p.A. through a lease of a business branch, with an annual fee of €3 million plus a variable component equal to 1.5% of revenues.

Key advisors involved in the transaction included:

Financial Projections

Here is a table outlining the financial projections for Plasmon following the acquisition:

Operational Changes

The following table summarizes the planned operational changes:

The advisors for the deal are listed below: